Market Confidence is where we believe we will see the most impact, which is already proving true. Since Australia Day and the school year returning, with all the speculation of a cut and now that it has occurred, market activity has been spurred on with a noticeable increase in stock available for sale across all price ranges, particularly up to $3M. We have seen a significant increase in buyer inquiry and our company Spring Buyers Agency, has been engaged by the largest number of buyers in one period since the pandemic. Selling agents are also reporting increased buyer inquiry, inspection attendance and purchase commitment.

Market confidence leads to increased demand, which then heightens competition for available properties and ultimately leads to a surge in property prices. Whilst the Central Coast has been known to offer a more affordable alternative to capital cities, many areas (particularly the beachside suburbs), are now out of reach for many buyers. This is pushing buyers into the fringe and northern suburbs of the Central Coast, again driving those property prices up. A Grade properties – those that tick all the boxes in relation to location, aspect, functionality, indoor/outdoor flow, size, aesthetic etc. and sit in the Central Coast’s most sought-after price range between $1,000,000 and $2,000,000, always attract strong buyer competition and achieve prices at or above expectation.

Lower interest rates often enhance borrowing capacity, enabling more individuals to enter the property market. It’s interesting to note however, that since the consecutive interest rate rises, we have continued to see buyers not wanting to utilise their full borrowing power and rather err on the side of caution. 25 Basis points isn’t going to make a significant difference at this stage and it may take lenders some time to update policy and pass on. Further rate drops will see more of an impact here. On the flipside, this also leads to further competition driving the property market.

For existing property owners, this rate cut translates to some financial relief. Again, this only offers limited relief for some as based on the average mortgage, it equates to approximately $25 per week. For a lot of mortgage holders, they require 3-4 times that to realise significant monthly repayment reductions that will make a real impact.

This environment will make it more challenging for first-home buyers to secure properties at reasonable prices. We would recommend prospective first-home buyers who have their pre-approval or are about to seek one, to act swiftly to enter the market before competition heightens.

Nobody has a crystal ball and the property market is fluid, with many external drivers none of us control. While the initial rate cut offers some confidence and relief, there are still global uncertainties, domestic wage pressures and inflation fluctuations that the RBA remains cautious about before committing to additional cuts.

Property provides an opportunity to build wealth. The market will always fluctuate, however over the longer term, will provide capital growth with the right strategy and purchase of quality property. We are often asked; “When is the best time to buy”? Our answer is always the same; “When you are ready with your finances in order, and you can comfortably afford the repayments and maintenance costs”.