INTEREST RATE ROLLER COASTER

New year and new market rates – this marks the first time in a LONG time we are in a position to share market insights with you with a rate cut in hand. What a welcome relief for mortgage holders, and an olive branch for those seeking to enter the property market.

So why did the RBA make the bold (and much-welcomed) decision to drop the cash rate? Why now and not before? Is the economy really slowing down and what is the key driver behind this move? Is this the beginning or the end of the rate rollercoaster?  So many questions and so far, answers nobody wants to hear.

In Australia, as expected, the RBA cut its cash rate by 25 bps from 4.35 per cent to 4.1 per cent, the first reduction since November 2020, citing a significant decline in inflation, alongside weak economic growth and a slower-than-expected recovery in private domestic demand. 

Despite the rate cut, policymakers cautioned that upside risks remain, and the likelihood of those cuts being made depends on what’s happening in the United States, China and the Middle East. Word on the street is the markets are pricing in four rate cuts for 2025… will it or won’t it happen… another question but what’s the answer?

If all that money and finance talk sparks your interest (pardon the pun) and you’d like to learn more about the Australian Reserve Banks rate cut decision, please visit this link to find out more.
Link : https://www.rba.gov.au/media-releases/2025/mr-25-03.html


SYDNEY HOUSING – WHAT’S THIS GAME ALL ABOUT?
There is an ongoing and obvious issue with housing supply in the Greater Sydney Region. Simply put, there is not enough, but more significantly, there is not enough affordable housing.

The heart of the problem is, that Sydney ‘proper’ pricing was somewhat affordable five years ago, however, ‘Covid-Creep’ has seen this take a dramatic incline.  For many, the dream of living in the heartland has diminished. Greater Sydney including Newcastle, Blue Mountains and Wollongong, has taken the brunt of the expansion of population seeking a home within the region at more palatable entry prices. The tough pill to swallow is that the outlying suburbs and cities have picked up speed and are now running with the Sydney wolves. Effectively, there is nowhere to hide, and the ‘struggle’ is definitely real.

And apartment prices are on the move. In some areas, home units are outperforming houses, which is an unusual inclination but reflects the lack of new property development across the board.

Closer to home, looking at seasonal trends, if you believe they still exist, Sydney’s property market should not be performing as strongly as it currently is. An influx of buyers (with likely more to come now the rates have dropped) and limited stock is driving an unprecedented volume of off-market offers. We are swamped with prominent buyer agents enquiring on behalf of clients seeking homes & apartments (both for primary residence and investment purposes) in the highly desirable Lower North Shore. 

So, what does this mean on the property playing field? 2025 has been a fast start for the Croll team with many listings selling before auction and off-market. Buyers are ready to purchase and keen to lock in the deal when they find what they like. It seems the anxiety of mortgage rates has been surpassed by the desire not to miss out. It’s a competitive market and being match-fit with your research up to date and your finance in place puts you in a winning position.

We have a huge database of past, present and interested clients who are actively looking to purchase. Add to that a raft of recent disappointed underbidders who have missed out on pre-auction & auction sales and off-market listings.

If you are considering selling or seeking a current market appraisal to help you better understand the value of your property asset, please reach out the Croll Real Estate Team.

Take a look at our current listings here and keep an eye out for our ‘coming to market’ listings – so you don’t miss a move !

CROLL WEBSITE LINK