Ninja in A Blazer – February 2025
January 31, 2025Ninja In A Blazer - 1st March 2025
We are nearing the end of the first quarter of 2025 and before we know it the Easter holidays will be upon us.
The biggest discussion in February was around interest rates and if the RBA were going to lower them. Now that the RBA has lowered the cash interest rate, I am sure the question on your mind is what impact has it made?
How does interest rate cut impact you?
The 0.25% rate cut will save you approximately $100 a month in mortgage payment for a $600,000 home loan. The impact is minor however if we see a few more rate cuts this year it could add up to a significant saving.
The recent rate cut also means increased borrowing capacity, easier refinancing and improved affordability for buyers based on the APRA serviceability buffer.
If you have spoken with a broker in the past and been given a budget to spend, it might be a good time to speak to your broker to see where your finances now sit with many lenders offering extra reductions on what is advertised. No two brokers or lenders are the same, so if you’re having trouble or would like a second opinion, we have some awesome brokers that we can recommend.
Has it had any direct impact on the local market?
In short, the answer is nothing significant. However, we started this year with the biggest January our office has seen in almost two decades of being in business. We saw the highest number of transactions we have ever done in a single month not only for a January (where it's traditionally one of the slowest months) but in the entire time we have been in operation.
Before the rate cut, we were experiencing a very strong market for sellers, and since the rate cut, we have not seen any significant changes to this with good levels of buyers to open homes, strong offers, and relatively short average time on the market for most properties. We believe the rate cut has assisted in providing buyers the confidence to return the real estate market and continue actively trying to secure their next home or investment.
The talk about rate cuts leading up to the RBA meeting on February 18th appears to have impacted the market well before it the first rate cut actually happened, which explains the activity levels seen since the start of the year.
What about the housing market in February?
During time of writing this letter leading up to the end of February, as a business we have once again seen an amazing number of properties being sold this month almost at the same level as what we saw in January. Property prices are sitting at the very peak and whilst we have been on a bit of a plateau without any significant increases in prices for the past few months, this is a positive for home sellers who have been able to establish and receive the highest value for their property. As someone looking to upgrade or downsize, we are seeing a fair bit of success with subject to sale offers. And as an investor, this could be a really good time to “cash out” and take the profit you’ve received over the past 4 years, as the massive increase in house prices we’ve seen over the past 4 years is in our opinion unlikely to happen again for a while.
As always if you would like further information, a discussion about the housing market, or anything real estate or property related please reach out to us as we are able to help or point you in the right direction
