May Newsletter

Winter Market Update: Lower Rates, Rising Opportunities

Thinking of making a property move this winter? You might be feeling a warm glow thanks to the Reserve Bank of Australia’s (RBA) latest cash rate cut.

In May, the RBA announced its second rate reduction for 2025, lowering the cash rate by 0.25 percentage points to 3.85%. This follows signs that inflation is easing, with the latest Consumer Price Index (CPI) showing a 2.4% rise over the 12 months to March, and underlying inflation (the trimmed mean) dropping to 2.9%, the lowest since December 2021.

RBA Governor Michele Bullock said, “We’ve come a long way and it hasn’t been easy, but we have made good progress on bringing inflation down and keeping unemployment low.”

Many economists now believe further cuts are likely, with some expecting up to five rate drops in total for 2025. Even before the latest decision, many lenders had already started cutting interest rates in anticipation, creating a strong incentive to review your current loan or secure pre-approval.

Property Market Snapshot

Despite global uncertainty, including President Donald Trump’s recent tariff announcements and the recent federal election, national home values continued their upward trend in April.

Cotality (formerly CoreLogic) reported a 0.3% monthly rise in home values, with all capital cities recording gains. Darwin led the way with a 1.1% increase, while Sydney and Melbourne edged up by 0.2%. Regional areas once again outpaced the capitals, continuing a trend that’s been in place since late 2024.

“The February rate cut gave the housing market a boost, but that momentum may be starting to ease slightly,” said Cotality’s research director Tim Lawless. “Election uncertainty and international news may be making some buyers and sellers hold off.”

Thinking About Buying or Refinancing?

Winter can be a great time to buy, often with fewer active buyers and more motivated sellers. The latest rate cut is also expected to spark a wave of refinancing, with a recent Money.com.au survey revealing one in three borrowers would consider fixing their loans if rates continued to fall — which they just did.

Whether you’re planning a purchase or want to make sure your current home loan still suits your needs, now’s a great time to check in.

If you would like to explore your borrowing power, start the pre-approval process, or simply want a fresh look at your loan, I’m here to help.

Get in touch today and let’s make the most of this market together.