By Brett White, Licensee – RE/MAX Extreme
It’s official—the Reserve Bank has delivered a second cash rate cut, and while the change may not seem massive at first glance, it’s a strong signal that better conditions could be ahead. For sellers, it’s another tailwind for strong buyer activity. And for buyers, it gives a little more room to move when it comes to borrowing power—something that’s been pretty tight in recent years.
Why a Rate Cut Matters
On Tuesday, the RBA dropped the cash rate by 0.25 percentage points, taking it from 4.10% to 3.85%. It’s the second cut in three meetings and the first time we’ve seen that happen since early 2020.
While the full impact will take a little time to filter through, there’s no doubt that this move sends a positive message to the market—especially here in Perth, where buyer demand is already strong and housing supply remains low. Lower interest rates help boost borrowing capacity, which means we could see more activity from both first-home buyers and upsizers in the months ahead.
What This Means for Perth
For Perth homeowners, this rate cut is another confidence boost. With the city’s strong population growth, ongoing housing shortage, and tight rental market, many sellers are already in a great position—and the rate cut just adds more energy to the market.
As we’ve seen in recent CoreLogic and REIWA data, prices across Perth continue to climb steadily. And now with cheaper finance potentially bringing more buyers to the table, we could see that momentum continue into winter and beyond.
$1 Million is the New Normal for Many Suburbs
Another trend that’s worth noting: the number of homes in Perth now valued at $1 million or more has jumped significantly in the last few years. Back in March 2020, only about 6% of homes across the city hit that milestone. Fast forward to April 2025, and it’s now more than 25%.
This shift isn’t just happening in blue-chip areas. We’re seeing million-dollar medians pop up in suburbs that were previously considered more affordable—especially across Perth’s northern corridor. That kind of growth highlights the strength and resilience of our local market and shows just how much buyer demand is still out there.
What’s Next?
No one can say for sure what the RBA will do next, but economists are predicting more cuts later in the year. If that happens, we can expect to see even more buyer activity as affordability slowly improves.
For sellers, now might be a great time to consider your next move—especially while stock levels remain low and competition stays high. And for buyers, the window of opportunity might just be opening a little wider.
Final Thoughts
Whether you’re thinking of upsizing, downsizing, or just keeping an eye on the market, this latest rate cut is a positive step for Perth. The fundamentals remain strong—tight supply, strong population growth, and a solid local economy—and with borrowing conditions starting to ease, the second half of 2025 could shape up to be very active.
If you’re curious about how these changes could affect your own property plans, feel free to reach out. Chat with Brett, Kathy, or Cristina from the Brett White Team — we’re here to guide you through your next move..
Source: REB (https://www.realestatebusiness.com.au/), CoreLogic (https://www.corelogic.com.au/) & REIWA (https://www.reiwa.com.au/)