Competition heightens as buyers surge into the market

Finder money expert, Richard Whitten, said the reduced cash rate has brought back interest in real estate as a sought-after asset class, with the most competitive rate at 5.49 per cent.

“The latest cash rate cut is expected to bolster consumer confidence further in the housing sector, as lower borrowing costs make property investment more accessible.”

The survey showed that Gen Z and Baby Boomers have been the most assertive, with 42 per cent having grown confidence in the property market.

Additionally, the Australian Bureau of Statistics data showed that the number of owner-occupier loans increased by 4.1 per cent to 72,991, compared to May last year, for an average loan of $659,920.

Similarly, fixed-rate options have been reviewed to match the more competitive market at 5.29 per cent for a five-year fixed mortgage and 4.99 per cent for a two-year fixed period.

Whitten said two additional rate cuts have been forecast by Christmas, improving sentiment and demand further.

According to financial experts, 56 per cent of the next rate cuts are expected in either July or August 2025.

Whitten said that the lower rate cut will heighten demand and competition in the market.

“This could mean prospective buyers have less flexibility when negotiating a price as demand spikes.

“Some home owners might be holding off putting their property on the market until interest rates fall further, which means fewer properties available to buy, propping up prices,” Whitten concluded.

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