Buy Now or Wait? What the Latest Rate Cut Means for You – Sunshine Coast Property Insight
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
There’s a lot of noise out there right now—but if there’s one clear message I’m seeing across the industry, it’s this: confidence is back in the property market.
Last week, the RBA cut the cash rate by 0.25%, bringing it down to 3.85%. That’s not just a number on paper. What we’re seeing on the ground here on the Sunshine Coast is a sharp rise in buyer enquiry. Offers are flowing in, and buyers are acting with more confidence. This is the kind of shift that tells us a second growth phase might be underway—faster than many anticipated.
Why did the RBA pull the trigger? Inflation has eased back into their target 2–3% range. The aim of this rate cut was to stimulate ongoing economic growth. Wages are slowly rising, retail spending is up, and the labour market remains robust. According to Dr Andrew Wilson, wage growth has ticked up to 3.4%—a subtle but meaningful sign of momentum.
Across the country, auction clearance rates are climbing too. While Queensland isn’t traditionally an auction-heavy market, these numbers are a useful pulse check on consumer sentiment. Last week, Sydney clocked in at nearly a 75% clearance rate—another tick in the “confidence” column.
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It’s easy to get lost in the media rollercoaster—boom one week, bust the next. But take a step back and look at the bigger picture:
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Stock levels remain low
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Rates are dropping
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Further cuts are expected
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Construction costs are high
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New builds are slow to start
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Population growth continues
Add it all up, and it spells strong ongoing demand for housing—especially in markets like ours.
Let’s talk Sunshine Coast specifically. As you’ve probably seen, the cost to build a new home is now well above what the suburb’s median price would typically justify. A four-bed, two-bath home on a standard block can cost far more to build than to buy established. This is drawing more buyers into the established housing market, where value and timing make more sense.
Across the capitals, price growth is already running hot:
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Sydney: +5.6%
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Melbourne: +1.8%
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Brisbane: +12.9%
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Perth: +15.8%
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Adelaide: +13.8%
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Darwin: +15.4%
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Hobart: +6.1%
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National average: +7%
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Sunshine Coast (latest CoreLogic data): approx. +7.8% annual growth
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Interestingly, we’re seeing the highest gains in the lower quartile of properties—those that are generally more affordable. That’s likely to continue, but as those values rise, they’ll start to close the gap with mid-range suburbs, and attention may shift again to the high-end markets.
Meanwhile, asking prices from vendors are rising too—up 7% nationally over the past 12 months. This aligns with what we’re seeing locally: more confident sellers, and buyers who are willing to meet the market.
But what does the RBA cut really mean for the average homeowner?
A 0.25% drop brings the average variable mortgage rate down to around 5.8%. On a $750,000 loan, that’s about $81/month less in repayments. Not exactly life-changing in a high-cost-of-living environment, but a step in the right direction nonetheless.
The bigger challenge remains for buyers. Since COVID, property prices on the Coast have nearly doubled. For those trying to break into the market, the leap is massive. I’ve spoken to many families recently who are already planning ahead for their kids—wondering how future generations will ever afford a home.
It raises an important conversation about the future of housing in Australia. We may see more multi-generational living or denser developments to meet the needs of a growing population. And while I’m no economist, I question how long we can rely on interest rates as the main lever for economic growth. We’ve watched them fall steadily for 35 years. Eventually, there won’t be much room left to move.
THE FUTURE OF HOUSING IN AUSTRALIA: ARE WE READY FOR THE SHIFT?
For now, the signs are strong for continued growth—especially here on the Sunshine Coast. But long-term thinking is key. Stay focused, stay informed, and if you’d like a copy of your local suburb report or want to know what your home might be worth, I’m only a call away.
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