Real estate analysts predict an increase in auction activity this weekend, driven by sellers eager to take advantage of an anticipated interest rate cut from the Reserve Bank of Australia (RBA). Recent data from the property firm Cotality reveals that a total of 1,835 auctions took place last weekend across Australian capital cities. While this figure is the highest since prior to Easter, it still reflects a decrease of approximately 300 auctions compared to the same period last year.
Analysts expect a significant rise in auctions this Saturday, with projections suggesting a jump to around 2,360 scheduled events—an increase of 29 per cent from the previous week. This uptick is attributed to the expected cash rate reduction, which could enhance borrowing power for potential homebuyers. Cotality’s research analyst, Caitlin Fono, noted that many vendors are awaiting the RBA’s interest rate decision and anticipate that interest rates could drop by 25 basis points to 3.85 per cent.
As the RBA’s monetary policy board convenes for a two-day meeting to review interest rates, market speculation strongly indicates a forthcoming cut. Current projections show a 96 per cent probability of this reduction, a slight decrease from the 100 per cent certainty felt just a week earlier.
Economists forecast that such an announcement will stimulate a rise in house prices throughout the remainder of the year. AMP’s deputy chief economist, Diana Mousina, stated that the recent decrease in interest rates has likely initiated an upswing in Australian home prices, albeit a modest one. Potential challenges, such as concerns over US tariffs and ongoing affordability issues, may temper this growth. Mousina estimates a potential rise of around 3 per cent in home prices for 2023.
The RBA Governor, Michele Bullock, is set to announce the board’s decision on interest rates at 2:30 PM AEST tomorrow, which is highly anticipated by both sellers and buyers in the market.