Property market in a winter and rates holding pattern
Buyers and sellers waiting for the Reserve Bank's next move and the traditional boomtime that is the spring selling season.
ECONOMISTS and property experts are optimistic of a housing rebound in the second half of 2025.
The property market experienced a winter slowdown in July after the widely anticipated Reserve Bank cut failed to materialise.
The monthly figure for the number of national residential listings declined by 3.0 per cent in July, falling to 227,135 properties, according to SQM Research.
In terms of price growth, Ray White released figures showing the one per cent rise seen in June was pegged back to a zero in July.
But many believe it is a pause rather than a change of direction – with most forecasting a drop from the current 3.85 per cent cash rate in August.
Ray White chief economist Nerida Conisbee noted the “pronounced deceleration in July following the Reserve Bank’s surprise rate hold.”
But, she added: “With a widely anticipated 0.25 per cent rate cut expected in August, followed by two additional cuts before year’s end, this pause appears temporary as markets position themselves for renewed acceleration.”
Louis Christopher, Managing Director of SQM Research said: “The July decline in total listings reflects a seasonal slowdown.”
The fact that older and distressed listings were taking longer to move was a sign of financial stability among homeowners, according to the veteran analyst.
He added: “Overall, the market appears to be in a holding pattern ahead of the spring selling season.”
Even in Perth, which has had the best performing market, there has been a marked slowdown.
Real Estate Institute WA President Suzanne Brown said “We typically see the number of properties coming to market decrease at this time of year.
“Houses don’t always look their best in Winter and it can be a lot of work to keep them looking market-ready for home opens when it is consistently rainy.
“So, many people choose to wait until the traditional ‘Spring selling season’ to list their home.”
Heron Todd White chief executive Gary Brinkworth also sees a booming next six months.
He said: “The second half of 2025 could witness renewed buyer confidence across many of today’s more subdued markets.”
“We remain optimistic about most markets, predicated on the assumption that no major unforeseen economic shocks unfold domestically or internationally.”
