RBA Interest Rate Cut & What It Means for Perth Homeowners

After a long run of rate hikes, the Reserve Bank of Australia (RBA) has officially cut the cash rate by 0.25% to 4.1%, signalling a shift in economic conditions. With inflation easing and the economy slowing, this long-anticipated move, ending a series of 13 consecutive rate hikes since mid-2022, is set to impact Perth homeowners, investors, and buyers alike.

But what does this mean for those thinking about selling their property? At Noble Avenue Real Estate, we believe this rate cut presents an opportunity for homeowners to take advantage of renewed buyer confidence and increasing demand in Perth’s northern suburbs.

What This Means for Sellers

Buyer Confidence is Back

Lower interest rates increase affordability, encouraging buyers who have been waiting on the sidelines to re-enter the market. More buyers mean stronger competition, more offers, and potentially better sale prices for your home.

Homeowners Have More Financial Flexibility

With banks expected to pass on the rate cut, many homeowners will see a reduction in mortgage repayments. For instance, an owner-occupier with a $600,000 home loan could save around $92 per month (The Australian). While it may seem like a modest figure, across the market, this adds up to more confidence among buyers—a key driver of real estate momentum.

This extra cash flow could make it easier to upgrade to a larger home or downsize to something more manageable, stimulating the market. If you've been contemplating a move, this rate cut could be the push you need to take advantage of buyer demand and strong property values.

Investors Are Paying Attention & Activity Could Surge

Lower interest rates may attract investors, as borrowing becomes more affordable. This could help ease rental shortages, but it also means more competition for homes, which is beneficial for sellers.

If you're considering selling an investment property, now is an ideal time to explore your options, as heightened buyer interest could work in your favor.

Faster Sales in a Competitive Market

When buyers are confident and active, homes tend to sell faster and at stronger prices. At Noble Avenue Real Estate, we specialize in positioning your home for maximum impact, ensuring it stands out to serious buyers.

Other Market Considerations

Renters Could See Some Relief
With more investors potentially entering the market, an increased supply of rental properties could help stabilise rental prices—good news for tenants who’ve been struggling with rising costs.

First-Home Buyers May Face More Competition
While lower rates make home loans more affordable, they also mean more competition, which could drive up prices in certain segments. First-home buyers should be prepared for a competitive environment.

Savers Will Earn Less Interest
Lower rates mean lower returns on savings accounts, which could impact retirees and those relying on interest income. Financial planning will be key in adjusting to these changes.

Not All Banks Will Pass on the Rate Cut Immediately
Some lenders may delay or only partially pass on the cut. Now is a great time for homeowners to review their mortgage rates and consider refinancing.

Is Now the Right Time to Sell?

If you’ve been considering selling, this rate cut provides an opportunity to capitalise on increased buyer demand while market conditions are in your favour.

Want to know what your home is worth in today’s market? Contact our team for expert guidance tailored to your property and goals.

Call us on (08) 9307 1280
Visit us at 2/46 Angove Drive, Hillarys WA 6025

With the right strategy, you could achieve a premium result in the current market. Let’s make your next move a successful one!

A reputation built on results.