Experts Predict the Property Market Could Change Significantly After a February Rate Cut – Here’s What to Expect

Experts Predict the Property Market Could Change Significantly After a February Rate Cut – Here’s What to Expect

Price Movements

A rate cut could restore confidence in the property market, possibly leading to a halt in price declines and even a return to price growth in some areas. Experts predict a 0-3% increase in property prices after a rate cut.

Buyer Activity

Once the RBA cuts rates, buyer demand is likely to rise. However, it may take multiple rate cuts before significant relief is felt by families. It is expected that there will be a notable spike in activity after several cuts.

Listings

As buyer demand increases, more sellers may decide to enter the market. However, some sellers may choose to wait and see the effects of the first rate cut before listing their properties.

Competition Heats Up

The early months of the year could present the best opportunity for buyers before competition intensifies. More rate cuts could lead to increased competition, especially in already competitive markets.

2025 Growth Forecast

Many of Australia’s largest cities are expected to see growth in property prices, with some regions predicted to experience significant increases. This trend could accelerate if rate cuts happen sooner than expected.

Government Schemes

The Help to Buy scheme could offer first home buyers some much-needed support, but with limited spots available, it may not have a huge impact on pricing. Addressing housing supply remains key to stabilizing prices.

What do you think?

Do you believe a rate cut will trigger a property boom, or is the market facing bigger challenges? Whether buying or selling, the team at Doyle Spillane Real Estate are here to help guide you through the market.

Source: realestate.com