In a recent analysis, PropTrack crunched the numbers on what a rate cut has typically done for property prices.
They looked at the average dwelling price increase following all rate cuts since 2011.
In Brissie, prices have historically jumped 0.4 per cent in the month following the cut and 1.6 per cent over the quarter.
However, in the current property cycle, we’re on a roll already, and the added momentum of a rate cut may spark bigger moves for Brissie.
These conditions are giving sellers confidence to move ahead with their plans for 2025. Buyer activity also remains strong.
Further south, activity is also sparking. Sydney and Melbourne saw improved auction clearance rates following the rate cut.
“It’s likely that buyers who had delayed purchases due to the sustained higher interest rate environment in 2024 are re-entering the market and stronger auction clearance rates reflect renewed competition among buyers,” PropTrack writes.
“Lower borrowing costs generally stimulate the housing market and in previous easing cycles, conditions have responded positively.”
Of course future rate cuts could have a further impact on property prices, while also easing the hip pocket impact with reduces home loan repayments.
As we know, property crystal balls are notoriously unreliable over the short term, however this rate cut is seeing Brissie continuing to trend in a strong direction.
Want to make a move in a moving market? Find out how much your property is worth or talk to us about selling.
