Rate Cut In May Now Certain?
In This Week’s How's The Market | Edition 108
Rate Cut In May Now Certain?
Imagine Life in this This Stunning Victorian Gem
From Swanky to Sensible: South Yarra Pad Sees Major Price Cut
Rate Cut In May Now Certain?
It’s looking more and more likely that the Reserve Bank will cut interest rates at their next meeting — with markets saying the decision is already made.
On the 9th of April, the ASX RBA Rate Tracker had a rate cut estimated at 100% certainty before now falling down to 70% chance of a rate cut.
CBA has come out this week with a bolder claim as they estimated the RBA will make a double rate cut of 50 basis points at their next meeting on 19–20 May 2025.
This has mostly been caused from the tariff effect and the reaction from international markets.
But what does this mean for Melbourne house prices?
In February, when the first rate cut occurred, Melbourne became the strongest performing capital city in Australia growing by 0.67% that month.
If a double rate cut was to occur, just after the federal election, that might encourage much stronger activity and confidence from buyers sending Melbourne into another mini boom.
As more interstate activity is happening across the state and larger competitive sales are consistently in the news, it seems that sentiment is slowly changing on the ground.
What The Agents Are Saying
The market is currently hard to predict and patchy.
Stock is low due to school holidays, Easter, ANZAC Day and the election and auction results from last weekend are very varied
We saw a few enormous sales and a few surprise pass-ins.
One agent called me up regarding a property that he had that passed in over the weekend to ask if he was missing something with the pricing on the listing.
Nope.
He said this is the first property in his career where he truly believes the problem with the property is not price.
It was a very well inspected home, it did need a bit of work but had a great floorplan, block size and north facing aspect in a great pocket of the suburb.
The buyers just didn’t bid.
I’ve heard similar stories from agents this last week with some beautiful homes in great pockets passing in.
Then others that need work and are a little run down are going berserk.
Sentiment is patchy and things are slightly harder to price.
The Wow Factor!
67 Drummond Street, Carlton, Vic 3053
1870s Victorian Terrace Meets Ultra Modern
Insane finishes throughout with an incredible renovation including a rooftop terrace with city views.
Price Guide: $6,000,000 - $6,300,000
In The Media
South Yarra: $40m-plus price expectations for swanky pad slashed by millions
This property just received a $5m price cut from their expectations.
Huge discount in value for an exceptional home in South Yarra's Domain precinct.
Final Thoughts
I think this may be the calm before the storm.
After the holiday and election period and when interest rates drop, Melbourne looks primed for a kick in price.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
