### Market slowdown signals shift in sentiment A noticeable cooling in Sydney and Melbourne’s housing markets suggests that buyer sentiment may be changing. After months of optimism driven by the prospect of lower interest rates, the reality of ongoing price increases has begun to erode that confidence. ### Rate cuts overshadowed by price growth Recent interest rate reductions were expected to ease pressure on homebuyers, but rising property values have quickly absorbed much of those potential savings. Many would-be homeowners now find themselves facing affordability challenges similar to those seen before the rate cuts. ### Experts weigh in on affordability concerns Economists warn that the balance between rate adjustments and rapid price movements is fragile. Without broader economic relief or slower growth in home values, affordability for first-time buyers may continue to worsen despite policy efforts. > “Rate cuts often take time to filter through the economy, but surging prices can nullify their effect almost immediately,” said one housing analyst. ### A cautious outlook With both cities serving as national housing indicators, the recent slowdown may signal broader market fatigue. Policymakers and buyers alike are watching for signs of stabilization that could ease financial pressure in the coming months. *** *Author’s summary: Rising property prices in Sydney and Melbourne have erased the relief expected from rate cuts, leaving homebuyers struggling with unaffordable housing once again.*

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Australian Associated Press on MSN — 2025-11-30