The real estate market is anything but cool.

The real estate market is anything but cool.

Interest rates are on hold but may soon decrease again, buyer demand is still high, and property prices are at all-time highs. Despite the fact that winter is officially here, the real estate market is anything but cool.

Property values increased by 0.6% for the month of June, continuing their upward trajectory. According to experts, the restricted housing supply and cash rate decreases earlier this year are to blame for the surge.

A number of new and enlarged housing plans are scheduled to go into operation as the new fiscal year begins. Please feel free to reach out to us at your earliest convenience to learn more about your borrowing capacity or to determine if you qualify for the schemes.

News about interest rates
Many economists were taken aback when the RBA decided at its most recent meeting to maintain the cash rate at 3.85%. Given the most recent inflation data, the majority were expecting a cash rate drop.

According to data from the Australian Bureau of Statistics, the Consumer Price Index (CPI) increased 2.1% in the 12 months ending in May, compared to 2.4% in the 12 months ending in April.

The trimmed mean, which measures underlying inflation, dropped to 2.4% in May, the lowest level since November 2021. That falls comfortably within the RBA’s 2-3% target range.

In a move that deviated from prior consensus rulings, the RBA board voted three times against raising interest rates and six times in favor.

The board was in agreement on the direction of interest rates but not on the timing of decreases, according to Governor Michele Bullock.

Bullock stated that before deciding on a potential rate drop, the board would wait to see if the quarterly inflation data, which is due at the end of July, revealed another decline.

According to some experts, the RBA’s decision to maintain the cash rate at its current level may reduce the rate of recent price increases in the real estate market. Now might be a good time to discuss your financing options with us if you’re seeking to buy.

On August 12, the RBA will make its next announcement about monetary policy. The Big Four banks in Australia anticipate lowering their cash rates next month.

Changes in home values

According to Cotality (formerly CoreLogic), Australia’s property values increased by 0.6% in June, continuing their five-month trend of improvement.

All of the capital cities saw improvements, with the exception of Hobart, where real estate values fell by -0.2%. In Australia’s capitals, the median price of a home is currently $1,034,806, and the median price of a unit is $697,233.

Tim Lawless, research director at Cotality, stated that the recent surge in property prices may be clearly attributed to falling interest rates.

He claimed that the initial rate drop in February was a turning point.

“A further cut in May and the increasing likelihood of additional cuts later in the year have further fueled positive housing sentiment, driving up values.” According to Lawless, auction clearing rates increased above the decade average during the final two weeks of June, but advertised supply was 5.8% lower than it was a year ago.

Every home auctions Rate of Clearance for Private Sales Every month, home values fluctuate.
VIC 706 71% 1486 ▲ ₲ 0.5% NSW 815 61% 1756 ▲ ₲ 0.6% ACT 65 71% 108 ▲ ₲ 0.9% QLD 207 56% 1048 ▲ ₲ 0.8% WA 15 47% 609 ▲ ₲ 0.8% NT 5 80% 22 ▲ ₲ 1.5% TAS 1 –% 159 ▼ – 0.2% SA 103 64% 270 ▲ ₲ 0.5%

* Australian auction results, clearing rates, and recent sales for the week ending July 6, 2025 * Monthly Home Values data as of June 30, 2025 As of 11:30 p.m., the clearance rate is preliminary and up to date. July 7, 2025, AEST

Are you prepared to purchase?
The hectic spring sales season is rapidly approaching. We kindly encourage you to explore your financing options with us at your earliest convenience if you plan to purchase a house this spring.

Some of the new and enlarged housing plans that are going to be implemented this fiscal year might be worth looking at. For qualified borrowers, the government would contribute up to 40% of the purchase price of new homes or 30% of the purchase price of existing homes under the Help to Buy shared equity scheme. Buyers would not be required to pay lenders’ mortgage insurance (LMI) and would just require a 2% deposit. Later this year, Help to Buy is anticipated to open.

This fiscal year, 50,000 additional Home Guarantee Scheme spots have been made available.

The First Home Guarantee has 35,000 spots available.
The Regional First Home Buyer Guarantee has 10,000 spots available.

The Family Home Guarantee has 5,000 spots available.
Removing the income and property price restrictions for the First Home Guarantee was one of the Albanese government’s election pledges. This means that starting in January 2026, all first-time homebuyers will be able to buy a home with a 5% down payment without having to pay LMI.

Contact us right now to discuss your financial requirements or to find out whether you qualify for these programs.

Together, let’s turn your dream of buying into a reality.

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