Interest rate cuts – they don’t just ‘stimulate’ the economy, but can be a serious game-changer for buyers.
And with the Reserve Bank of Australia lowering the cash rate to 4.10% this week (a 0.25% drop), there’s much talk of homeownership becoming more accessible, and potential savings for those entering the property market for the first time.
So what do the cuts mean, and how much can buyers really save?
Since September 2024, home values across Sydney have dipped on average ?, encouraging a (steady) wave of renewed buyer confidence over the last quarter.
Homeseekers who were previously priced out of the market due to rising costs may now be reevaluating their options, and can expect to see many lenders passing on reductions over the coming weeks, in order to provide more competitive loan options. This could mean the possibility of lower repayments, greater borrowing power, and therefore more money saved over the lifetime of a loan.
However, there’s another side to consider; lower interest rates can trigger a surge in buyer demand. As more buyers enter the market, competition intensifies, increasing the likelihood of property prices rising again in the future.
So what’s the take-home?
Whether you’re entering the property market for the first time, or looking to sell and upgrade, don’t try to time it – move when it’s the right time for you.
Our experienced team can guide you to take full advantage of the current conditions and rates, regardless of what these may be.
We’d love to help – find your local Prudential Real Estate office below and contact us today!
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
