So, having said in LAST WEEK'S POST that the result was unlikely to impact the property market in a major way, the clarity that comes with such a clear margin is something that I expect to have a positive effect on the market overall. Particularly when you compare it with the potential uncertainty that might have come with a minority government.

Not surprisingly, the most common question I have been asked this week by sellers, buyers and investors alike is what the future is likely to hold for the rest of 2025.

Now, as regular readers will know, I am not a big fan of forecasting the future of, for example, median property prices. It’s a bit like trying to forecast the weather. But I think it’s worth having a look at what the experts are saying about interest rates, as these will have an impact on the confidence levels of home buyers of all types.

The most bullish of the Big Four Banks at the moment seems to be the NAB. They are predicting that the RBA Cash Rate, which is currently at 4.1 percent, will hit 3.6 percent by June this year (down 0.5 percent); fall a further 0.5 percent by September 2025; plus further 0.25 percent drops in the last quarter of this year and the first quarter of 2026. That’s a total cut of 1.5 percent in the next twelve months!

The Commonwealth, Westpac and ANZ forecasts are less dramatic, but they all still expect rates to fall by 0.75 percent by the end of 2025, with a further drop early in 2026. The only difference is that the ANZ is saying the cuts will happen a little faster than the others.

Taking all of these forecasts on board, it seems that unless the banks have completely missed the mark, our home loans are likely to be markedly cheaper before the end of the year, with even more good news likely before the next twelve months are done.

And if you look at what has happened in the Melbourne market since the first rate cut arrived in February, (with home prices rising slowly but surely every month since), it’s not hard to see what could be coming for the rest of 2025.

Consequently, as I’ve said in several recent posts, if you’re thinking of making a move in the foreseeable future, you would be wise to consider doing it sooner rather than later. So if you need an updated appraisal to ensure you’re working with accurate numbers, feel free to give us a call at Barry Plant Thomastown this week on 9466 3233.

Best wishes,

Con Constantinou

Barry Plant Thomastown