May Overview – Rate cuts, real shifts, and what we’re seeing

May 28, 2025

An eventful May has swept through the property market, leaving behind the faint scent of change in the winter air. As expected, the RBA delivered its second rate cut of the year – 25 basis points, but not without toying with the idea of a sharper, 50-point move. That hesitation alone told a story: the economy is walking a tightrope, and confidence, once again, is the balancing act.

Leading into the cut, the property market was quietly moving – neither hot nor cold, just ticking over. There’s been a stubborn reluctance in the national psyche to accept that property values, like all things, ebb and flow. While media headlines romanticised runaway auction results, the truth on the ground was far more nuanced: caution, uncertainty, and a buyer base still feeling out the floor.

Let’s call it straight: the market needed that rate cut. In truth, it probably needs two or three more. But even this single move was enough to lift the market off the canvas. Following the holiday-stalled April, listing activity picked up steadily. Auction clearance rates across Sydney, according to SQM Research, had languished below 50% – until the rate cut. Almost overnight, that number nudged above the halfway mark.

That modest bump tells a deeper story: rate cuts restore confidence. Not in a frenzy, not in a flood – but in small, sure steps. And in this game, steps matter.

At CobdenHayson, we clocked several strong results in May – including a discreet, off-market sale at 20 Louisa Road, Birchgrove for around $10 million. That makes it our third sale north of $10 million on the Balmain Peninsula – and we’re not done yet. More prestige listings are on the launch pad, ready to test the mid-winter waters.

Our company-wide clearance rate climbed to 83% – a reflection of sharp strategy, disciplined dialogue, and agents tuned into the market’s rhythm. Open home traffic ranged from strong to sporadic; some properties pulled 35-40 groups on debut, others sat in single digits. It underscores what we’re seeing with crystal clarity: buyers can feel the tide turning, but they’re not throwing caution to the wind. Price sensitivity remains high, even as optimism begins to surface.

As for the broader economic backdrop? It’s noise. Forecasts are flying in all directions – rate hikes, more cuts, global trade jitters, inflation spikes, even whispers of stagflation. It’s financial spaghetti – messy, tangled, and often overcooked.

We’re not buying the headlines. Instead, we’re anchored in what matters: the day in front of us, the people at our opens, and the real conversations we’re having with sellers and buyers alike.

That’s where truth lives.