THE PropTrack VIEW : PropTrack has forecast weakened price growth as interest rates remain elevated and a federal election introduces additional market uncertainty. Buyers, now presented with more options, may exercise greater discretion, potentially easing upward pressure on prices.
While housing demand, measured through enquiry per listing, has decreased, the anticipation of rate cuts in 2025 may stimulate renewed interest, revitalising the market.
The federal election scheduled for 2025 is predicted to slow housing activity, a pattern consistent with previous election periods. This anticipation might temper the pace of buying and selling as parties’ policies and potential incentives for home buyers become focal points, influencing market behaviour.
Expectations for improved conditions hinge on the anticipated rate cuts and ongoing adaptations within the construction sector.
PropTrack has predicted continued price growth throughout 2025, although at a more moderate pace. Melbourne may face challenges with expected growth ranging from -1% to 2%.
While uncertainties linger regarding what 2025 might hold for the Australian property market, prospects for ongoing price growth remain supported by anticipated rate cuts, which could boost borrowing capacities, alleviate financial strain on households and further drive market activity.
STRATEGIC BUYERS AGENTS VIEW: If you are considering buying a property in 2025, timing will be important, with a pre-RBA rate cut period, and post-rate cut period.
Pre Rate Cut: While some banks have shaved rates, but they are not cheap, however you will buy with less competition. We believe Melbourne will be a buyers’ market until interest rates fall. The ASX Rate Tracker, ANZ and CBA tip this to happen in February, others say April 2025.
Post Rate Cut: Loan rates will be cheaper but more buyers will enter the market and compete….with you!
Whenever you decide to move, you can buy better with an experienced buyer agent on your team.