by Sanjeev Sah | Feb 11, 2025 | Market Updates

Property investors should factor in the possibility of an interest rate cut in the near future, as it could significantly influence the housing market in 2025. 

With inflation now within the Reserve Bank of Australia’s target range, both the Commonwealth Bank and ANZ believe the cash rate is likely to be cut in February.  

Ray White’s chief economist, Nerida Conisbee, noted that an early rate cut could restore market confidence, especially in Sydney and Melbourne where activity has slowed. In Melbourne, it could stabilise declining prices, while in Sydney, it may accelerate price growth. 

Ray White predicts modest price growth of up to 3% if a February rate cut occurs, but uncertainty remains about how many cuts might follow. ANZ expects two cuts, while NAB forecasts as many as five, with the first likely to come in May. 

Aspiring property investors should monitor market conditions and potential rate changes carefully, as these shifts could shape the trajectory of the housing market in the months ahead.