RBA Cuts Rates Again – What It Means for Sydney Home Buyers

The Reserve Bank of Australia has cut the cash rate by 25basis points to 3.85%—the second reduction this year and a clear signal thatwe’ve entered a new phase in the property cycle. The new rate of 3.85% is thelowest Australians have experienced in more than two years and is likely topush home prices, borrowing capacities and buyer confidence up. 

After two years of aggressive tightening, which saw rates rise from a record low of 0.10% to over 4%, today’s move reflects the RBA’s growing confidence that inflation is easing, and economic conditions are softening. For Sydney home buyers, this is a pivotal moment—and it’s one that will shape buyer sentiment, market momentum, and price growth heading into the second half of 2025.

What It Means for Buyers

At SydneySlice, we view rate cuts as a signal - they mark the start of a turning point. And in a market as tightly held as Sydney's, timing that shift is everything.

Here’s what we’re telling our clients:

• Your Borrowing Power Has Just Increased: Lower rates improve serviceability and lift loan limits. If you were previously on the edge of your budget, today’s cut could make all the     difference.
• Buyer Confidence Will Return Fast: We expect to see more buyers re-enter the market in the coming weeks, especially upgraders and investors who had been waiting on the sidelines.
• Prices Will Start to Shift—Subtly, Then Sharply: Early momentum is already building in select pockets of the Eastern Suburbs and Lower North Shore. As confidence grows, stock tightens, and     rates fall further, upward pressure on prices will likely follow.
• First Home Buyers Should  Act Quickly: Increased competition will make it harder for entry-level buyers to secure quality properties. Acting early - before prices respond—gives you a strategic edge.
• Pre-Approvals Matter More Than Ever: With changing lending conditions, getting your finance ready now is key. Don’t wait until competition heats up.

The SydneySlice View

As buyers’ agents, we watch for inflection points—and thisis one of them. Smart buyers will move before the crowd catches on.Right now, we’re still in a moment of relative calm. But it won’t last.

If you’ve been considering a purchase, or waiting for theright time to act, we believe that time is now.

This rate cut isn’t just a financial shift—it’s a marketsignal. And those who act strategically now will be ahead of the curve.

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Looking to make your next property move with confidence?Get in touch with SydneySlice today and let us help you navigate your propertysearch with clarity, access, and advantage.

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