Winter has arrived and with property prices heating up, it’s probably a good idea not to put your purchasing plans on ice.
Last month’s cash rate cut by the Reserve Bank of Australia (RBA) prompted property prices to increase to a record high in May. Experts expect housing values to continue rising throughout the year.
To find out about your borrowing capacity or to get the ball rolling with pre-approval on your finance, get in touch today.
Interest rate news
The RBA cut the cash rate by 0.25 percentage points to a two-year low last month – the second cut this year. The official cash rate is now sitting at 3.85 percent.
In response, all of the big four banks and many other lenders reduced their variable home loan rates.
For those with a $500,000 loan, the reduction equates to a saving of around $76 a month in repayments, while a mortgage holder with a $750,000 loan would save about $114 a month.
The latest figures from the Australian Bureau of Statistics showed the Consumer Price Index (CPI) rose 2.4 per cent in the 12 months to April.
Meanwhile, annual trimmed mean inflation – the figure the RBA likes to closely watch – was 2.8 per cent in April, up from 2.7 per cent in March.
The RBA’s next monetary policy decision will be announced on July 8.
Home value movements
Property values rose 0.5 per cent in May, according to Cotality (known previously as CoreLogic).
Every capital city recorded a positive change of at least 0.4 per cent through the month. Meanwhile, auction clearance rates picked up following the RBA’s cash rate cut.
“The continued momentum we’re seeing across almost all markets is no doubt being fuelled by rate cuts – both those that have already happened, but also potential cuts in the coming months,” said Cotality research director Tim Lawless.
“With interest rates falling again in May, we are likely to see a further positive influence flowing through to housing values in June and through the rest of the year.” Regional property prices are also on the rise.
Monthly Home Value Table – May 2025
| Region | Auctions | Clearance Rate | Private Sale | Monthly Home Values 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% |
Sources:
- Monthly Home Values figures as of 31 May 2025
- Australian auction results, clearance rates and recent sales for the week ending 08 June 2025
- The clearance rate is preliminary and current as of 11:30pm AEST, 11 June 2025
Ready to buy?
If you’re in the market to purchase your first home, next home or an investment property, winter can be a favourable time to buy. There’s usually less competition among buyers and vendors may be more motivated to lock in a sale.
To explore your finance options, get in touch. We’ll run through your financial situation and line you up with a home loan that suits your specific needs.
The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only. Although every effort has been made to verify the accuracy of the information contained on this website, Infocus, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.