Welcome to our November Newsletter
Sellers have come out on top this spring, with property prices rising at impressive levels across the country, thin housing supply, and buyer demand remaining strong.
This month, the Reserve Bank of Australia (RBA) left the cash rate on hold, after hotter-than-expected inflation data in the September quarter. It’s looking increasingly unlikely borrowers will see another rate cut this year.
That said, interest rates have dropped three times in 2025 (in February, May and August) and competition is strong amongst lenders for new clients, so there are a lot of good reasons to purchase a property.
If you’re looking to snap up your first home, next home or an investment property before Christmas, chat to us about pre-approval on your finance today.
The Reserve Bank of Australia (RBA) decided to keep the cash rate on hold at 3.60% again this month, amid escalating inflation.
The Consumer Price Index (CPI) rose 3.2% over the 12 months to the September quarter, with the most significant rises in housing (2.5%), recreation and culture (1.9%), and transport (1.2%).
Trimmed mean annual inflation was 3% to the September quarter, at the upper end of the RBA’s preferred 2-3 target range, and up from 2.7% to the June quarter. It was the first time trimmed mean annual inflation has increased since December 2022.
Underlying inflation, as represented by the trimmed mean, also rose to 2.8% in September, up from 2.6% in August.
Unfortunately for borrowers, RBA Governor Michele Bullock dampened hopes of one final cut before year’s end.
“We have already had three interest rate cuts,” she said.
“I know mortgage holders always want more, but it’s also important that we make sure that we keep inflation under control because ultimately that’s also what impacts people’s living standards, so it’s really important we get that right.”
Some experts believe the next move from the RBA could even be a cash rate hike.
If you haven’t reviewed your home loan recently, it could be a good time to arrange a home loan health check with us.
The next RBA cash rate decision will be announced on 9 December.
According to Cotality, home values have been rising at the fastest pace in more than two years.
National dwelling values increased 1.1% in October – the strongest monthly gain since June 2023.
Every capital city recorded a monthly increase in values, ranging from 1.9% in Perth to 0.4% in Hobart.
“Before the February rate cut, housing conditions were losing momentum, even recording flat-to-falling values through late 2024 and January 2025,” said Cotality research director Tim Lawless.
“The first rate cut in February marked a clear turning point, with home values moving through a positive inflection across most regions and gathering steam since then.”
One factor fuelling growth is the lack of housing supply. Advertised stock levels over the four weeks to 26 October were 18% below average, according to Cotality.
The uptick in growth also coincides with the expanded 5% Deposit Scheme (which became available from 1 October). This has added demand to the lower and middle price points of the market among first home buyers.
Regional areas saw solid growth, recording a 1% increase in October – the highest monthly gain across the combined regional markets since March 2022.
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 1160 | 67% | 2075 | ▲ 0.5% |
| NSW | 689 | 59% | 2026 | ▲ 0.8% |
| ACT | 57 | 74% | 101 | ▲ 0.7% |
| QLD | 249 | 51% | 1287 | ▲ 1.2% |
| WA | 19 | 68% | 663 | ▲ 1.6% |
| NT | 6 | 50% | 45 | ▲ 1.7% |
| TAS | 0 | 0% | 181 | ▲ 0.1% |
| SA | 89 | 78% | 342 | ▲ 0.9% |
If you’re contemplating a summertime property purchase, get in touch early and we’ll organise pre-approval on your finance.
If you’re new to the property market, why not explore the Australian Government’s 5% Deposit Scheme. Under the scheme, first-home buyers can purchase with as little as 5% deposit, without having to pay expensive lenders’ mortgage insurance (LMI).
The number of places are now uncapped, income caps have been removed and property price caps have increased. Chat to us about the eligibility criteria.
