Following a strong finish to 2024 our team is back, feeling refreshed and upbeat for the year ahead.

With inflation slowing down to 2.4% financial markets are pricing in a more than 90 per cent chance of an interest rate cut in February according to the ABC. Some banks including ANZ and NAB have begun reducing interest rates two weeks ahead of the Reserve Bank’s February meeting – with more expected to follow (REA).

This is good news for potential sellers as the added flexibility and confidence in buyers should support price growth in the second half of the year.

All being well, we’d expect this trajectory to continue with +3-5% potential price growth next year underpinned by lower interest rates, increased buyer confidence and strong clearance rates.

Moreover should APRA reduce the 3% mortgage serviceability buffer, buyers’ capacity will be significantly increased as this will accelerate access to property.

A potential election

With Anthony Albanese hot on the campaign trail, we’re expecting an election to be called for April or latest May.

This means our 4 week auction plans must get under way asap. The current state under supply is helping vendors given the balanced market we predict clearance at 65% -70% like last year or better.

Our Recent sales as vendors reached consensus on understanding Port Phillip house prices had adjusted (according to 8.9% REA) and grown 1.0% over 2024.