Last week, the Reserve Bank of Australia (RBA) made its third rate cut this year, lowering the official cash rate by 0.25% to 3.60%.
Historically, such rate reductions have been linked to a significant rise in Australian home values, with double-digit growth expected within two years of the start of a rate-cutting cycle, according to the Australian Financial Review.
This latest cut has spurred a surge in property market activity, as evidenced by preliminary auction results over the weekend, showing that 75.0% of homes taken to auction were sold. This figure represents a 3.4% increase from the previous week and marks the highest rate since early April last year.
The rise in auction clearance rates was noted across all capital cities. Melbourne achieved a preliminary clearance rate of 75.5%, a 4.6% increase from the previous week and the highest figure since late July. Sydney also recorded a high clearance rate at 75.0%, marking its strongest performance since mid-July.
According to Cotality's daily dwelling values index, property values, particularly in Sydney, are witnessing an upward trend. Market analysts predict a further three 0.25% rate cuts by mid-2026, which would lower the cash rate to 2.85%.
The potential reduction in rates, alongside the Albanese government's initiative that allows first-home buyers to secure properties with a 5% deposit starting 1 January 2026, is anticipated to amplify buyer demand and push property prices higher.
Published:Monday, 18th Aug 2025 Source: Paige Estritori
Australian real wages have hit a challenging plateau, currently trailing 6.1% below their mid-2022 'covid-bubble' heights. The Reserve Bank of Australia's (RBA) recent Statement of Monetary Policy provides little solace, projecting that real wages will stay 5.5% beneath their peak by the close of 2027. This comes amidst SEEK's latest advertised salaries index, which paints a picture of slowing wage growth. - read more
The latest inflation figures from the Australian Bureau of Statistics have disrupted expectations for a rate cut by the Reserve Bank of Australia (RBA) in September. July's monthly CPI inflation escalated to an annual rate of 2.8%, rising significantly from June's 1.9% and outstripping forecasts from multiple market analysts. This unexpected inflationary surge is mainly attributed to a dramatic 13.0% hike in electricity prices and robust travel costs. - read more
A new federal scheme, designed to lower the demand for lenders’ mortgage insurance (LMI), may inadvertently escalate home prices and hinder lower-income earners' ability to purchase property, according to concerns raised by Australian insurers. The Home Guarantee Scheme, set to expand in October, offers first-time buyers the opportunity to bypass the usually required LMI if they have managed a deposit of just 5%. - read more
A credit score is a numerical representation of your creditworthiness. It's derived from your credit history, which includes the total amount of debt you have, your payment history, and other financial behaviours. - read more
Financial hardship occurs when an individual is unable to meet their financial obligations due to a variety of circumstances. This could stem from a loss of income, unexpected expenses, or rising living costs that outweigh financial resources. - read more
Welcome to your essential guide on how to navigate the complex world of personal loans in Australia. Whether you're seeking to finance a major purchase, consolidate debt, or cover unexpected costs, understanding the nuts and bolts of personal loans is crucial. In this conversation, we'll shed light on why being credit-savvy is not just smart, but necessary for anyone considering a loan. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without obligation. We respect
your
privacy.
Knowledgebase
Prime Rate: The interest rate that commercial banks charge their most creditworthy customers.
