Media Release | 18 February 2025
Commentary from The Agency's CEO of Real Estate Matt Lahood on the RBA's February 2025 interest rate decision.
The RBA cut interest rates by 25 basis points to 4.10 per cent at its February 2025 board meeting after much speculation surrounding the decision. This the first time that official interest rates have fallen since November 2020.
We have seen a strong start to real estate sales in 2025 due to momentum gathering speed about the likelihood the RBA would cut interest rates.
Buyers who missed out on properties in 2024 have been more aggressive in securing a home particularly at auction and investors are out in numbers in an attempt to get ahead of what they believe will be an even greater influx of buyers and sellers post today’s announcement of lowering interest rates.
Sentiment is more positive than last year and the wait and see approach is no longer relevant to buyers and sellers alike. It is important to note that it may take about 60 days for the true impact of this decision to come to light with buyers needing to go back to their mortgage brokers and banks to revise their borrowing power. We also eagerly await how much of this interest rate reduction the banks will pass on to consumers.
We should also recognise that now more than ever conditions differ from suburb to suburb particularly in capital cities and it is essential for those who are looking to sell or buy to speak to their local real estate expert to understand their unique market.
The RBA will announce its next decision on interest rates on 1 April 2025.