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 RBA's latest rate decision.
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? Get in touch with our team.
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:
Meanwhile, inflation is gradually tracking lower. Australian Bureau of Statistics data shows the Consumer Price Index (CPI) rose 2.4% year-on-year to April 2025.
Keep an eye out for the next RBA monetary policy decision, due on 8 July.
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.
Regional markets are following a similar trend, showing solid increases across the board.
Data as of 31 May 2025. Auction and clearance results are current as of 11 June 2025.