Rate Cuts, Rising Confidence & the Real Story Behind Auctions
Sunshine Coast Property Market Update — Week of August 14, 2025
Well, the biggest news in property this week came straight out of Martin Place—with the Reserve Bank officially cutting the cash rate by 0.25% to 3.60%. It’s the third cut this year and a clear sign that we’re in a new chapter of the economic cycle. For many homeowners and buyers, this is welcome news. But as always, the devil’s in the detail.
The RBA made the move off the back of easing inflation (now well within their target band) and lagging productivity growth. They’ve even downgraded long-term productivity expectations to just 0.7%—a sobering figure that hints at deeper structural concerns in the economy.
But in the short term, this latest cut offers real relief for mortgage holders who’ve been absorbing higher repayments for the past two years. We’ve now gone from 4.35% down to 3.60% in a matter of months. Combined with signs of rising consumer confidence, it could breathe fresh life into our local market as we move into the spring selling season.
Confidence Is Climbing
The ANZ-Roy Morgan Consumer Confidence Index jumped 3.9 points this week to 90.6—its highest reading since May 2022. It’s not a surge, but it’s a steady climb. Confidence matters. When buyers feel more secure about their finances and future, they’re far more likely to act.
I’m already noticing more serious inquiry from buyers here on the Coast, and this latest rate cut could be the catalyst that nudges a few more into action. It’s not a stampede, but momentum is building.
A Stronger Market Ahead?
Michael Yardney’s latest update included ANZ’s revised property price forecasts, and the outlook is cautiously optimistic. They’re now tipping capital city prices to rise 5.0% in 2025 and 5.8% in 2026 figures that show a stabilising market with steady growth.
Of course, the Sunshine Coast often moves to its own rhythm. We’ve consistently outperformed the national average, buoyed by high demand, low stock levels, and strong interstate migration. If those conditions hold and right now they show no sign of slowing—we could see even stronger results locally over the next 18–24 months.
Auctions: The Sideshow, Not the Main Event
There’s been a lot of chatter lately about auction clearance rates, especially in Sydney and Melbourne. You’ve probably seen headlines like “Auction boom: 75% clearance!” splashed across Monday newsfeeds. But let’s put that in perspective.
Only around 7% of homes in Australia sell at auction. That means more than 9 out of 10 sales happen through private treaty quietly, strategically, and without the street theatre.
Here on the Sunshine Coast, auctions aren’t the main game. Sure, they can be effective in certain price brackets or when urgency is needed. But for most sellers, private sale remains the more practical and profitable path. It gives buyers space to consider, and sellers more room to negotiate. Less pressure, more control, better outcomes.
Don’t be distracted by the noise. Auctions might win headlines, but they don’t define the market.
What’s Happening Locally?
Back on home turf, the Sunshine Coast market continues to show quiet strength. According to PropTrack, our median house value hit $1.076 million in July, rising 0.64% over the quarter and 5.2% year-on-year.
That said, I believe the actual annual growth figure is likely sitting closer to 7–8%, particularly in tightly held lifestyle areas. PropTrack data can sometimes underplay movements due to its national weighting, but local momentum feels stronger on the ground.
High-end sales are still rolling in. Just last week, 31 properties sold for over $1 million, including a standout $4.2 million sale in Parrearra. Demand remains strong, especially in low-supply suburbs with proximity to the beach, schools, or hinterland.
Listings remain tight, but with improving confidence and reduced mortgage pressure, I expect we’ll see more activity from both buyers and sellers as spring approaches.
In Summary
The RBA’s latest rate cut is a green light for many would-be buyers and a sign that the worst of the monetary tightening is behind us. Consumer sentiment is on the rise, and leading banks are forecasting moderate but consistent growth ahead.
Here on the Sunshine Coast, the fundamentals haven’t changed tight supply, strong demand, and a lifestyle that continues to attract attention. It’s a market that rewards good timing, smart strategy, and a clear understanding of the numbers behind the headlines.
If you’re considering your next move and whether it’s buying, selling, or just understanding where your property stands and feel free to reach out. I’m always happy to offer a no-pressure chat to help you make confident, informed decisions.
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