This is why most people are going to miss the next housing wave.

Despite predictions rate hikes would slow the market, the opposite has been true. Since January 2023 home values have been rising 1-2% a month.  

The issue of course is under-supply.

To address the current housing shortage and to meet population growth we need to build 240,000 homes each year. There were only around 170,000 housing starts in 2024 and only $163,000 in 2023.

So at the start of 2025 we are already 147,000 houses behind. And would need to build 387,000 homes this year to catch up. 

To put this in perspective the most number of housing starts ever in Australia in a year was around 200,000. 

So a target of 240,000 a year is hugely optimistic. 

So what happens when rates do come down?
 

Each 0.25% cut increases the average persons borrowing capacity by $20,000 - $30,000. So, if we get 3-4 rate cuts over the next 12 months everyone is going to have an extra $100,000 to spend.

This means we will be looking at a fresh wave of cashed up buyers entering the market in the months ahead. 

Which is why my clients who are in a position to do so have been investing over the last few months. 

If you want to get into the market now to beat the next property wave then Make a time with me today for an initial obligation free chat.