Australia’s housing market is booming even as the RBA holds rates. The Reserve Bank left the cash rate at 3.60% in late Sept 2025, noting that any rate cut is unlikely soon. In practice, prices keep climbing: research firm Cotality reports the total market value at about $11.8 trillion, up $678 billion in a year, and national home values are 4.8% higher year-on-year. The average home price has just topped $1 million for the first time. In other words, low supply and high demand are powering price gains (supply shortages are widely blamed for “soaring” prices).
From a buyer’s agent standpoint, this means competition is fierce. We advise buyers to plan smart and act early. Here are some key takeaways:
- Assume steady rates: The RBA’s cautious stance means a quick rate cut shouldn’t be counted on. Have your finances approved now and budget as if rates stay at ~3.6%. In other words, don’t stretch to the limit – build in a buffer in case rates remain elevated.
- Use incentives: If you’re a first-home buyer or eligible for deposit schemes, take advantage now. The expanded 5% deposit schemes can boost your buying power immediately without waiting for rate relief.
- Focus on the basics: Instead of competing for trending suburbs, consider value areas with good upside. Emerging corridors (such as outer-Brisbane or fringe Melbourne/Sydney growth corridors) can also provide excellent long-term gains. These places tend to grow gradually and predictably, with solid infrastructure, good jobs, and migration to match.
- Partner from the start with professionals: A buyer’s agent’s job is to be strategic, not speculative. We source off-market transactions, negotiate for you, and keep emotions out of the decisions. In a slugfest seller’s market, our local data and networks will allow you to keep your eye on value and not get caught up in the frenzy and overpay.
The economy is also helping to sustain housing demand. The RBA said household income and wealth were rising and unemployment was low at around 4.2% (as at August 2025). Over a million jobs have been added since 2022, and hardly anyone is missing mortgage payments — just about 1.45% nationwide. Basically, a lot of buyers still have money to both borrow and spend, which keeps home demand up. When real estate values increase, people feel wealthier and more confident to buy or spend, which in turn helps keep the economy and housing market strong.At Key2Dreamz, we help buyers make smart moves in today’s market. We create a plan that suits your budget, find homes that match your goals, and look for real growth opportunities. Want to talk about your next step? Call Key2Dreamz Buyers Agency on +61 439 260 917 or book a free consultation.