Cash Rate on Hold – But Property Markets Are Already Celebrating

Source: CoreLogic

As widely anticipated, the Reserve Bank of Australia (RBA) held the cash rate steady at 4.1% in April. While this may appear uneventful on the surface, key indicators suggest the February rate cut is already flowing through the housing market—and fast.

Signs of Economic Softening

The latest data shows a clear easing in two of the RBA’s biggest concerns:

• Inflation is now sitting comfortably within the RBA’s 2–3% target range

• Job growth saw its largest monthly drop since December 2023, pulling annual growth down to just 1.9%—a level not seen since 2021

These shifts signal a more balanced economy and give the RBA greater flexibility in easing monetary policy moving forward.

Housing Responds Swiftly

Despite the cash rate holding in April, the February 25bp cut has already lifted housing activity:

• Home values rose 0.3% in February and 0.4% in March

• Consumer sentiment hit a 3-year high in March, according to Westpac/Melbourne Institute

Even a modest $81/month saving on a $500,000 loan boosted buyer confidence, with a clear flow-on effect in housing demand.

What’s Next?

Markets are pricing in two more cuts this year, with the cash rate potentially reaching 3.35% by the end of 2025. All eyes are on the April 30 quarterly inflation data—a key input into the RBA’s May decision. If inflation stays below 3%, as expected, another cut could be imminent. However, the path to a stronger growth cycle in housing will depend on more than just rates. Affordability challenges, tight lending, and slower population growth will continue to act as headwinds.

The Investor Opportunity

This moment presents a strategic window for property investors:

• Rates are gradually easing

• Buyer confidence is rebounding

• Price growth is early but visible

• Competition remains relatively low

The market hasn’t turned fully bullish yet—but the conditions are aligning for long-term investors to get ahead of the next wave. Looking to capitalise on shifting market momentum? Now’s the time to explore opportunities, get finance-ready, and position ahead of broader market movement.

If you have any questions or need any information about Australian property, buying Australian property, selling property or looking for property management, you can leave a message or WhatsApp +61 481 988 806 to contact real estate expert, Entre Shield Property, we have the most professional sales consultants to answer any related questions for you!

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