Interest Rates – A Drop & Maybe Interest Rates, Expats, Election Madness. What’s Happening in the Market?

Ahh, another week in real estate, another set of curveballs! Between an interest rate cut, an impending election (cue the policy promises and political posturing), and expats diving back into the market, there’s plenty to chat about. So, let’s break it all down – minus the boring bits.

 

Interest Rates - A Drop and Maybe Another?

 Yes, it finally happened – the RBA shaved 0.25% off interest rates, bringing us down to 4.10%. Hallelujah! A sigh of relief for borrowers, but the real question is: will there be another cut? Some experts are tipping one in April and others later this year, which could supercharge buyer confidence and send competition soaring – but who knows! In this topsy-turvy world predictions are unreliable at best, laughable at worst! But we still make them, don’t we?

 In real estate, the only safe bet is that people will always need a place to live. Interest rates, buyer sentiment, and economic conditions may swing like a pendulum, but well-presented, well-located properties will always have an audience. If you’re house-hunting, locking in a deal before either of those happens, if it happens, might not be the worst idea. You see, it is always about competition. Sellers face competition from other sellers, buyers face competition from other buyers.

 

Global Influences: Trump, Trade & Market Jitters

Donald Trump’s economic policies continue to create uncertainty in global markets, particularly regarding tariffs, trade tensions and potential economic instability. For Australian buyers and investors, our stable property market remains an attractive haven, particularly for those looking to hedge against overseas uncertainty.

 

Expats Are Back – And They’re Keen

After a few quiet years, expats are snapping up homes again. Why?
 A weaker Australian dollar is making local property look more affordable for those earning in foreign currencies.
 More Aussies are planning their return home (Sydney Harbour views > grey London skies, right?).
 Buying now means they potentially beat the next wave of price rises if rates drop again.

We’re seeing strong interest in our blue-chip suburbs – especially homes with Harbour views, good land size, proximity to transport, shops, and top-tier schools. Basically, the kind of places people don’t let go of easily!

 

Election Jitters – Will It Impact Property?

Elections tend to make buyers and sellers a little twitchy. But here’s the thing – while some will sit tight and wait for the outcome, others will see an opportunity to pounce while there’s less competition. Historically, once the election dust settles, the market keeps rolling along – the cogs of life keep turning.

 

Market Conditions – What’s Moving?

Location, Location, Location! Buyers are being super selective, focusing on lifestyle, convenience, and long-term value. If a property ticks all the right boxes, it’s selling well.

Competition is strong for the right properties –homes with a functional layout, low-maintenance apartments, and anything with stunning views or walkability is in demand.

 Investors are reappearing, looking to get in before another rate drop makes borrowing easier for everyone else.

 

For Sellers – Get the Price Right & Win Big

Let’s talk pricing strategy – because how you price your home matters more than ever.

 Sensible pricing creates competition, which often leads to a much higher final sale price than expected.
 Overpitching to sellers = stale listings. A home that sits too long loses its spark, and buyers start wondering what’s wrong with it and start looking for a possible bargain.
 Underquoting to buyers = very annoyed people who walk away and don’t come back. And nobody wants that.

Selling isn’t an exact science, but getting probable price vs. possible price right from the start is key. A good agent (ahem, like me!) will show you real comparable sales data, not just throw you a big number to win your listing and then bash you down once the campaign begins.

 

Real Estate Is a Life Cycle – Buyers & Sellers Will Always Exist

The property market, no matter how unpredictable, is always fuelled by the treadmill of life. Divorce, death, financial pressures, kids spreading their wings and moving out, a surprise gift of triplets, a sudden urge to move interstate or travel the world—whatever the reason, there will always be people buying and selling.

And the dynamic? Buyers want to buy low; sellers want to sell high… and then buy low!

The key to navigating this? Understanding the market and the level of competition within it.

Right now, we’re seeing:

Limited stock – Not much on the market, keeping competition strong. An opportune time to sell.

Plenty of buyers – Demand is still high, not at the levels post COVID, but there is still strong demand even with economic uncertainty. But buyers in our neck of the woods do need to be realistic about what their money can buy. Offering below market value won’t secure you your next home.

A slight lift in market energy – The combination of an interest rate drop, and election speculation is keeping things lively. Exciting times!

So, whether you’re buying, selling, or just keeping an eye on the market, I am always up for a coffee and chat. Need some real talk about your property? Give me a call!

Yours in property
Kate Galetto