Get insight into interest rates predictions, buyer trends, and how to navigate your next move
The Australian property market is no stranger to change, and 2025 is shaping up to be another dynamic year. Between shifting interest rate expectations, evolving buyer behaviour, and a resurgence in property market confidence, now is the time to understand what’s really going on and how it could affect your financial decisions.
What the RBA Is Signalling with the Interest Rates
After a prolonged cycle of rate hikes to combat inflation, the Reserve Bank of Australia (RBA) is showing signs of steadying. While the current cash rate remains at 4.10%, analysts are predicting potential rate cuts in late 2025, particularly if inflation continues to ease and employment remains stable.
What does this mean for you?
- If you’re looking to refinance, holding off may secure you a lower rate but that depends on your current deal.
- First-home buyers might see improved borrowing conditions by year-end.
- Investors could find new entry points as confidence returns.
Buyer Sentiment Is Rebounding
With greater stability in interest rates, more Australians are re-entering the market. According to CoreLogic, property values have begun to rise modestly in most capital cities, led by Melbourne and Sydney.
Key trends:
- Regional areas remain attractive for affordable homes and lifestyle.
- Rentvesting is increasing among younger buyers and first home buyers.
- Buyers are valuing broker-led advice over direct bank offers, seeking personalised strategies in a competitive lending environment.
Challenges to Watch
Despite some positive indicators, affordability remains a major barrier. Wages haven’t kept up with rising property prices, and saving for a 20% home deposit still puts many buyers on the sidelines. That’s why schemes like the First Home Buyer Guarantee Scheme and lender-specific low-deposit loans are becoming crucial.
The Bottom Line for 2025 Borrowers
This year isn’t just about timing the market, it’s about understanding how your personal financial situation fits into the bigger picture. Whether you’re considering refinancing, buying your first home, or leveraging equity to invest, having clarity around your options is more important than ever.
Curious about your borrowing power?
Use our free calculator to get started or book a 1:1 consultation with Craig for tailored advice.