Here’s What the Market is Doing in 2025
Can you believe it’s already February? It feels like just yesterday I was wrapping up my final blog for 2024, wondering what the market would look like in 2025.
While no one has a crystal ball, here’s what we do know so far:
The first RBA meeting is scheduled for February 18th, and there’s speculation that a rate cut could be on the horizon. But keep in mind, even if the RBA cuts rates, banks are under no obligation to pass those cuts onto mortgage holders.
A federal election will take place before the end of May, which typically causes a slowdown in investor activity.
April will be a quieter month due to the combination of Easter and Anzac Day public holidays, with three short weeks.
What I think will happen:
Q1: The market will continue to favour serious buyers who are ready to move. We’ll likely see an increase in “window shopping” as buyers prepare for potential rate cuts.
Q2: Transaction volume may remain low, but I expect the market to stabilise with auction clearance rates returning to around 70%.
Q3: As winter ends, the volume of transactions will pick up. However, I don’t anticipate a dramatic price increase, as cost of living pressures are still significant.
Q4: If we see a few interest rate cuts earlier in the year, the market could shift in favour of sellers by spring. Lower rates generally allow buyers to borrow more, which could lead to rising prices.
That said, don’t stress about timing the market. If you’re a buyer, focus on finding the right property at the right time for you—that’s the most important thing.
As always, if you’d like to chat or need assistance, feel free to reach out. I’m here to help!
