Winter has come, it’s cold outside, but the property market shows no sign of resting. In fact, May saw housing prices reach new highs following the Reserve Bank of Australia’s latest interest rate cut. And according to market analysts, this upward trend is likely to continue for the rest of the year.
If you’re considering buying, now could be a smart time to act. Need to know your borrowing capacity or want to get started with a loan pre-approval? Infinitive Finance is here to help.
Interest Rate Snapshot
The RBA cut down the official cash rate by yet another 0.25%, bringing it down to 3.85%. That’s a two-year low, marking the second rate cut in 2025.
Following suit, major lenders, including the big four banks, passed on these savings by reducing their variable home loan rates. For borrowers:
- A $500,000 loan could now cost around $76 less each month
- A $750,000 loan may see monthly savings of roughly $114
Meanwhile, inflation is gradually tracking lower. Australian Bureau of Statistics shows how the Consumer Price Index (CPI) rose 2.4% year-on-year to April. On the other hand, trimmed mean inflation, which is closely monitored by the RBA, has gone up slightly to 2.8%, up from 2.7% in March.
Keep an eye out for the next RBA monetary policy decision which is due on July 8
What’s Happening with Home Values?
Home prices are shooting up again in May, with Cotality (formerly CoreLogic) reporting a national monthly increase of 0.5%.
All capital cities recorded gains of at least 0.4%, and auction clearance rates also improved following the rate cut.
“Rate cuts—both those already delivered and those possibly ahead — are clearly fuelling this ongoing growth,” said Tim Lawless, Cotality’s research director. “We’re likely to see more upward momentum into June and beyond.”
Regional markets are following a similar trend, showing solid increases across the board. Here’s a quick breakdown of May’s movements:
| State | Auctions | Clearance Rate | Private Sales | Monthly Change |
|---|---|---|---|---|
| VIC | 482 | 64% | 1607 | ▲ 0.4% |
| NSW | 838 | 53% | 1785 | ▲ 0.5% |
| ACT | 69 | 67% | 92 | ▲ 0.4% |
| QLD | 228 | 45% | 1193 | ▲ 0.6% |
| WA | 8 | 38% | 652 | ▲ 0.7% |
| NT | 3 | 33% | 39 | ▲ 1.6% |
| TAS | 0 | 0% | 146 | ▲ 0.6% |
| SA | 103 | 64% | 317 | ▲ 0.4% |
Data as of 31 May 2025. Auction and clearance results are current as of 11 June 2025.
Thinking About Buying This Winter?
Winter often brings less buyer competition, creating more opportunities for those ready to act. Sellers are often more motivated during this season, which can lead to quicker deals, whether you’re buying your first home, upgrading, or investing.
At Infinitive Finance Solutions, the premier mortgage broking firm in Australia, we’re here to help you make the most of it. Ready to explore your home loan options? Reach out today. We’ll take a close look at your financial situation and help you find the loan that fits just right.
