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House Price Rises Were Meant to Ease. So What’s Happened?

  • Property prices across Australia rose in May 2025 following two Reserve Bank interest rate cuts earlier this year.
  • The rate cuts increased borrowing power, encouraging buyers to bid up prices amid a market already strained by supply and demand imbalances.
  • While some buyers are priced out, others manage affordability especially with dual incomes or parental financial support, and governments are focusing on long-term housing supply increases.
  • Research director Tim Lawless said the market rise is “no doubt being fuelled by rate cuts” and expects this influence to continue through the year.
  • The rising prices and supply constraints suggest affordability pressures will persist despite rate cuts, with policy and market distortions complicating the housing landscape.
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cootamundraherald.com.aucootamundraherald.com.au
+4 Reposted by 4other sources
Lean Left

Home prices on the rise as interest rate cuts kick in, with more expected

Regional prices continue to rise and Melbourne takes a turn.

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  • 50% of the sources lean Left
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Business Insider (Poland) broke the news in on Saturday, May 31, 2025.
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