Housing Market Booms After Labor's Election Win

At AusNewsLanka, we aim to keep the Australian community informed with timely updates.

In the week after the election, auction clearance rates jumped to 70%, according to fresh numbers from property analyst Cotality (you might remember them as CoreLogic). That’s a 10% rise compared to mid-April.

What’s driving the bounce? A mix of political stability, buyer confidence, and growing expectations that the Reserve Bank of Australia (RBA) is about to cut interest rates again next week.

“This is a clear sign of renewed optimism,” said one market watcher. “Buyers are back — and they’re bidding.”

Across the country, 1,784 homes went to auction last week — the busiest it’s been since just before Easter. Melbourne led the pack, with 830 auctions and a clearance rate of 73.2%, only slightly down from the week before. Sydney, meanwhile, clocked in at 67.7% from 665 auctions. That marks eight weeks in a row the Harbour City has remained under 70%, but signs of momentum are building.

Economists now believe house prices could outpace wage growth through the rest of 2025 — and into next year, especially when Labor’s homebuyer assistance packages begin rolling out.

As for interest rates, there’s growing speculation the RBA could cut the cash rate by 25 basis points from its current 4.1%, with some even tipping a double cut to 3.6%.

Back in February, the RBA made its first rate cut in nearly five years — and it may not be the last. Analysts are expecting at least three more cuts this year, especially now that inflation has dropped back into the bank’s target range for the first time since 2021.

Adding to the positive outlook, world markets are also buzzing over renewed US-China trade talks, particularly around Donald Trump’s tariffs, which had been casting a shadow over global economic confidence.

So, what does this all mean for homebuyers?

With the election behind us, interest rates looking likely to fall, and government support on the way, there may never be a better time to act — if you can get in before prices rise again.

Stay tuned with Aus News Lanka – the leading platform for news for Australians.