This move was widely anticipated, with more than 90 percent of economic forecasters predicting the cut. Indeed, the only debate seemed to be whether the RBA would drop rates by 0.25 or 0.5 percent.

What seems to have caught a few more people by surprise, however, is the predictions about what to expect from housing prices as we move towards the second half of 2025.

A prime example is the news this week that the economists at HSBC are predicting that housing will become less affordable over the next two years with prices expected to outpace inflation and wages growth in every capital city around Australia. These increases in house values are being forecast despite the government’s efforts to increase the supply of housing.

HSBC is predicting that prices in Sydney and Melbourne will rise by up to 12 percent by the end of next year, driven by a combination of a shortage of new housing along with further cuts by the RBA to official interest. Both of these trend are expected to encourage more people into the property market.

Of course, the government’s announcement that it will make it easier for buyers with a 5 percent deposit to get their foot in the door will also add to higher demand levels as well.

Clearly, forecasts like this will only add to the sense of urgency that many people in Melbourne’s northern corridor are feeling; whether you are trying to get your foot in the door by securing your first home, or looking to sell and upgrade to your next home.

So if you would like some obligation-free advice on how to move forward before prices get any higher, don’t hesitate to give us a call at Barry Plant Thomastown this week on 9466 3233.

Regards,

Con Constantinou

Barry Plant Thomastown