Thinking of selling in 2025? Let’s talk.

We’re in the home stretch to sell in 2024 and already increased conversations are occurring with a focus on what the market will be like in 2025. There is increasing hope that with rates expected to fall, this will enhance buyer sentiment and perhaps selling conditions will improve. This may very well be true as data reflects that with every 0.5% basis cut to the cash rate that borrowers can secure an extra $50,000.

There are a few interesting dates coming our way though, with the RBA meeting in February, which is almost universally being agreed by banks and economists as the month that the RBA will start a cutting cycle. There is much conjecture around rates, with Australia slow to pull the trigger. Although, we also delayed lifting rates as our then RBA Governor Philip Lowe assured us that Australia’s inflation was different to other economies and transitionary as opposed to embedded. This was another calamitous statement on par with Governor Lowe’s 2022 proclamation that interest rates would not increase from 0.1% until at least 2024.

Moving past indiscretions to the side, all the banks are horribly inaccurate with cash rate forecasts, but given the weak Aussie economy, everything is pointing towards rates needing to be cut. This should kick off a trend of further cuts through 2025, with some suggesting as many as four through the course of the year. This is the first marker that could have a material impact on the property market and buyer sentiment. Will it kickstart price growth? It will certainly help to improve confidence and should encourage more borrowers into the market, so at some point we’d expect to see an uptick.

The second important and, in our view, very crucial date will be the Federal election, which looks likely to fall in March. Typically, the weeks surrounding an election will see many put a pause on making large financial decisions such as buying a property. This will impact campaigns and auction dates with many sellers pondering whether to list before or after the election. Making the March date even tricker is the fact that the election is closely followed up by Easter, so it could be a very interesting period to effectively plot a campaign without disruption.

On one hand there is the positive boost of a rate cut and an expected narrative from the RBA that further cuts are likely, however we could also be looking at a Federal election and Easter destabilising a clear campaign path. As a result, we’re suggesting it’s best to start meeting with your preferred agents now to assess how to best navigate what will unfold in Q1 ’25. We have many clients looking to hit the market in early January, which could be a smart play. Here’s a little secret about buyer behaviour that we’ve seen year after year – if it’s expected that rates will be cut in the future, buyers progress with their purchase on that future confidence. Rates don’t even need to be cut and improved sentiment could be well in play in January.

For further insights and the most detailed market overview, please have a conversation with any one of our agents today and make sure you start 2025 with the ideal strategy.