Raine & Horne predicts rate cut will spark a bumper autumn property market

Leading Australasian property group Raine & Horne welcomed the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate today, expressing confidence that this move will provide a much-needed boost to Australia’s real estate market.

Mr Angus Raine, Executive Chairman of Raine & Horne, said, “This rate cut is precisely what the property market needed.

“The pent-up demand we’ve been seeing since the end of 2024, combined with more affordable borrowing conditions provided by lower interest rates, will drive activity in the market this autumn.

“We’ve been predicting a vibrant autumn property market, and now with this rate cut, I’m confident the market bounce back will happen sooner rather than later.”

Mr Raine added, “It’s surprising to hear some commentators claim this rate cut won’t immediately impact real estate activity.

“In my view, that perspective doesn’t account for the substantial buyer demand that has been building, and with today’s move by the RBA, buyers will now be more motivated to act.”

Mr Raine predicts that this rate cut “will also spur on sellers to list their property”.

“Our January data recorded a significant rise in appraisals and listings, indicating that vendors are confident the market will respond positively to the rate cuts.

“A 30% year-on-year (YOY) increase in appraisal values and a 14% rise in listing values reflect a strong outlook as we enter a market cycle set to benefit from rate cuts,” Mr Raine said.

Mr Chris Nicholl, CEO of Raine & Horne, echoed Mr Raine’s sentiments, stating, “We are thrilled with the RBA’s decision to reduce the cash rate.

"This decision provides an excellent opportunity for Australians looking to enter the property market as first-time buyers as well as investors seeking to grow their wealth.

“As inflation settles within the target range, this first rate cut ensures that the property market remains a strong, and a viable option for homeowners and buyers in the months ahead.”

Raine & Horne also reported a 19% increase in Open for Inspections (OFIs) attendance during the middle weekend of February 2025 compared to the same weekend in 2024, signalling that eager buyers are ready to capitalise on the improved borrowing capacity brought on by the rate cuts.

“Our OFI data clearly indicates buyers are ready to move,” Mr Nicholl added. “Furthermore, Raine & Horne is perfectly positioned to guide our clients through this pivotal phase in the property cycle.

“With more buyers benefiting from improved borrowing capacity, we anticipate a highly dynamic market as we move through the final two weekends of summer and into autumn.”