Rate stability should keep summer market busy as inflation persists

The Reserve Bank of Australia (RBA) has hit pause on interest rate cuts, but the decision is unlikely to impact buyer confidence with demand expected to continue throughout late spring and into summer, according to LJ Hooker.

Mathew Tiller, Head of Research and Business Intelligence, said while new listings have lifted towards the end of the year, they are still below average creating strong competition between purchasers.

“It is not just mortgage-holders hoping for a rate cut today; many sellers have also been waiting on the sidelines, holding out for another reduction in the hope it will create more momentum,” he said.

“Stable rates are a good thing as they provide buyers with some certainty to plan, and this keeps enquiry levels strong. It can be tempting to time selling your property with a rate cut, however, there are plenty of reasons to go to market now.

“Prices continue to edge higher, increasing month on month. Buyers are motivated as we head into summer, particularly families looking to lock in a new home before the start of the new school year. Investor activity is also busy as yields stay firm and vacancy remains tight.”

Housing stock levels are down in most capital cities, which continues to place upward pressure on prices. This is reflected in strong attendance at open homes and auction clearance rates holding at around 70 per cent, signalling solid demand.

With inflation edging back above three per cent, Mr Tiller said the RBA will want to see clearer progress before making its next decision, even with a softer jobs market. With global growth cooler, there is time to wait for clearer data.

“The risk at the moment is two-sided, holding off on further rate cuts will keep their options open for 2026,” he said.

“Despite household budgets continuing to feel the pressure, rate stability avoids extra pain. Recent cuts are still flowing through the market, and the RBA will want to see the full effect it has on the economy.”

Selling in spring traditionally gets the most attention, however buyer interest is expected to remain throughout early summer. Mr Tiller said many house-hunters will use the Christmas break to reassess their plans, browse online listings and attend inspections.

“Listing over summer or even launching a pre-market campaign allows vendors to position themselves ahead of the competition and beat an influx of listings that typically arrives in late February or March,” he said.

“It can also be a good time to showcase lifestyle features such as outdoor entertaining and swimming pools. There is the added advantage of daylight savings allowing for mid-week evening inspections.”