Financial markets expect the Reserve Bank of Australia (RBA) to slash interest rates four more times this year, with the cash rate expected to fall to 3.10% by the end of 2025.
Lower interest rates will increase borrowing capacity and buyer demand, lifting prices.
House prices will also rise significantly when Labor’s 5% deposits for all first-time purchasers come into effect on January 1, 2026.
Labor’s policy will boost borrowing capacity and attract more first-time home buyers into the market, increasing overall buyer demand and prices.
Australian renters are also facing bleak conditions.
https://www.macrobusiness.com.au/2025/05/australias-housing-crisis-takes-ugly-turn/
