Moderate uptick in property sales expected as RBA lowers cash rate

Moderate Uptick in Property Sales Expected as RBA Lowers Cash Rate

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance), was featured in Real Estate Business in May 2025 ahead of the RBA’s second rate cut of the year, with markets pricing a 96 per cent chance of a 0.25 per cent reduction that would bring the cash rate from 4.1 per cent down to 3.85 per cent — levels not seen since mid-2023.

Mark noted that while some commentators had floated the possibility of a larger 50 basis point cut in the context of global trade uncertainty driven by Trump’s tariff plans, the RBA was more likely to take a cautious approach. He pointed to the central bank’s track record under governor Michele Bullock, who had overseen just one cut since taking office in September 2023 — the February 2025 reduction — and had consistently signalled caution as the priority. With US Federal Reserve chair Jerome Powell also resisting further easing given uncertainty about the direction of economic growth and inflation, the global context reinforced that patience rather than acceleration was the likely posture.

Other experts painted a picture of measured optimism. HSBC chief economist Paul Bloxham noted that core inflation had returned to the RBA’s target band without a recession or a significant rise in unemployment, which was the good news, though he cautioned that per capita incomes had been falling and structural reform rather than rate cuts alone would be needed to lift living standards. Chief economist Dr Diaswati Mardiasmo observed that major banks were already moving on mortgage rates ahead of the decision, positioning to stay ahead of competition, but expected the impact on property transactions to be gradual rather than dramatic. Cautious buyers remained in the market and property prices were still at historic highs in many areas, which would temper any surge in activity.

If the rate environment has you reconsidering your borrowing options, contact Evolve Lending & Finance to find out what is available to you now.