Interest Rate Cuts Spur Rebound in Australian House Prices

1

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

February saw a 0.3% rise in dwelling values across the five major capital cities following three months of downturn.

Despite this monthly increase, the overall quarterly dwelling values for the major capitals experienced a slight dip of 0.2%, primarily weighed down by reductions in Melbourne and Sydney.

However, over the past year, home values on the same aggregate level recorded an uplift of 4.6%, with Melbourne uniquely experiencing a year-on-year decrease of 2.9%.

The upswing extends to the auction market, where clearance rates have demonstrated a strong recovery, reflecting the trends in house prices, especially within Melbourne and Sydney.

As the market anticipates further rate cuts throughout the year, expectations are set for continued appreciation in Australian housing values, hinting that purchasing property could become even more costly in the coming months.

Published:Saturday, 1st Mar 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

March 2025: Australian New Car Sales Experience Slight Decline

17 Nov 2025: Paige Estritori

In March 2025, Australia's automotive market recorded a slight downturn, with new car sales totaling 108,606 units-a 0.9% decrease compared to the same month in the previous year. This marginal decline reflects the ongoing economic pressures affecting consumer spending habits. - read more

Green Loans Drive Down Personal Loan Averages in Australia

17 Nov 2025: Paige Estritori

In recent developments within Australia's financial sector, the increasing availability of green loans has begun to influence the average rates of personal loans. Green loans, designed to finance environmentally friendly initiatives such as the purchase of electric or hybrid vehicles and sustainable home upgrades, are typically offered at lower interest rates compared to standard personal loans. - read more

RBA Rate Cuts Provide Mortgage Relief, Personal Loan Rates Unchanged

17 Nov 2025: Paige Estritori

In 2025, the Reserve Bank of Australia (RBA) implemented a series of rate cuts, reducing the cash rate from 4.35% to 3.60%. This move was aimed at alleviating financial pressures on borrowers, particularly mortgage holders. Consequently, most lenders, including the major banks, promptly mirrored these reductions, leading to lower mortgage rates and providing relief to homeowners. - read more

Australia's Electric Vehicle Financing Hits $6 Billion Milestone in 2024

09 Nov 2025: Paige Estritori

In 2024, Australia witnessed a remarkable surge in electric and hybrid vehicle financing, with total loans reaching $6.17 billion-a 50% increase from the previous year. This substantial growth underscores a nationwide shift towards more sustainable transportation options. - read more

Westpac Resolves Auto Finance Class Action with $81 Million Settlement

01 Nov 2025: Paige Estritori

Australia's Westpac Banking Corporation has reached a settlement of A$130 million (approximately $81.84 million) to resolve a class action lawsuit concerning its auto finance practices. The lawsuit, initiated by law firm Maurice Blackburn in 2020, alleged that between March 1, 2013, and October 31, 2018, Westpac and its subsidiary, St George Finance, permitted car dealers to increase interest rates on car loans to earn higher commissions. - read more

Click for more Finance News