Rate Cuts!
Posted by: r23
19th May 2025 10:39pm
How many interest rates cuts in FY 2025 are we expecting folks ? What impact will this have on housing prices ? Share your thoughts..
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Comments 9
cazter
Not sure how many interest rate cuts we will have but the problem in Australia is that the cost of living is so high that any cuts aren't really helping. Also the housing prices plus rental prices continue to rise due to demand.
site77
While the anticipated rate cuts in 2025 may provide some relief to borrowers and stimulate housing market activity, the overall impact on home prices will depend on various factors, including supply constraints, construction costs, and broader economic conditions. Potential buyers and investors should remain vigilant and consider these dynamics when making housing market decisions.
BCafeS15
I think 4 rate cuts. I think this will increase house prices as buyers become more confident.
Burnt Out Digger
The rate cuts will be good for the economy but will also allow investors to buy more houses
Danni30723977
Interest rate cuts may boost housing demand, raising prices, but overall impact depends on supply, regulations, and economic conditions.
DebraA
I have taken on a mortgae at 64 and fixed short term as i expect interest rates to keep slipping down. Sales in my area are increasing due to the lower rates.
aunty gran
This will be an unpopular comment. I am a self fully self funded retiree and dreading the next cuts in interest rates due to the negative impact this will have on the merge amount l have in my savings account . When prices go up for groceries goods and services rates etc my income stream pension has a twice yearly rise adjusted to CPI. This increase which is minimal have experience 0 increase and the most is $20 . So while mortgage borrowers are struggling spare a thought for how hard it is for those of us who worked hard all our lives, going without many things to be debt free and have some money in retirement which is now being eaten away by the cost of living. There is pain all around caused by bank interest rate fluctuations but hey how good are their own profit margins!!.
jtmorri
I think there will been two more cuts later this year. Probably 0.25 basis points each from the cash rate. It will drive housing prices up based upon supply not meeting demand. It is going to take a lot longer than a few months for new stock of affordable homes to be constructed and enter the market to cool the housing market down. That sort of building plan will take 3 - 5 years or beyond to have any impact. Unfortunately, rate cuts aren't good for everyone, especially retirees living off of their savings and interest income and in turn it makes them stay in their own large home longer rather than moving (they own their home asset and can't see themselves affording anything else and especially not in the area they know and are currently established which is usually a prime location).
mare
Not sure but it may raise the cost of housing