As 2024 draws to a close, there’s growing anticipation of a possible interest rate cut from the Reserve Bank of Australia (RBA), which could come sooner than many had expected. The latest inflation figures show a 2.7% increase over the 12 months to August 2024, placing inflation squarely within the RBA’s target range of 2-3%. While it’s wise not to get too carried away after just one month in this range, it’s a promising development—especially as inflation wasn’t forecast to return to this level until 2025 or even 2026.
This recent inflation drop has put renewed focus on the RBA’s remaining meetings for 2024, scheduled for early November and December. Between these meetings, we’ll also see the September and October inflation figures, which could strongly influence the RBA’s next move. Should inflation remain stable or close to target, the RBA might consider Australia’s first interest rate cut in December, providing a much-needed relief after a prolonged period of high rates.
Throughout 2024, all of Australia’s big four banks initially forecast a rate cut before the end of the year. However, as inflation remained sticky, Westpac, ANZ, and NAB revised their predictions, pushing expectations for a rate cut into 2025. Commonwealth Bank (CBA), however, has held firm, maintaining that a rate cut could still come as early as December 2024.
Globally, many developed countries, including New Zealand, Canada, the UK, and the US, have already begun easing their cash rates, in some cases cutting by as much as 0.5%. While the RBA is typically conservative in its approach, these international movements could play a role in its upcoming decisions.
For those looking to enter or expand within the property market, now could be a prime opportunity. Interest rates are widely expected to start falling in 2025, with some predictions suggesting as many as four rate cuts over the next 12 months. This could trigger a surge in buyer confidence and renewed demand across Australia’s property market.
But waiting until the rate cuts are fully underway could mean missing out on today’s lower property prices. High interest rates have kept many potential buyers sidelined, either through restricted lending, concerns about affordability or just general "fear of action". Once rate cuts begin, it’s likely that demand will surge, pushing property prices up in many areas. By acting now, you can secure property at today’s prices while still benefiting from lower interest rates in the months to come.
The possibility of an interest rate cut before the end of 2024—and continued cuts throughout 2025—makes now the perfect time to get a foot on the property ladder. Whether you’re a first-time buyer or an experienced investor looking to expand your portfolio, making moves before the next property boom could put you in a prime position for long-term gains.
At The Property Mentors, our experienced mentors can guide you through the process of securing the right property at the right time. Whether you’re ready to buy now or need a little more time to prepare, our team will work with you to ensure your strategy is aligned for success in the months and years ahead.
Don’t wait for the market to heat up—take action now to secure today’s prices and set yourself up for success. Book a call with a Property Mentors mentor today and start your journey towards building a strong and profitable property portfolio.
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