Interest rates are no longer the biggest factor holding buyers back, with a new national survey showing nearly half of Australians who bought or sold in the past year weren’t influenced by rates at all.
The 2025 State of Real Estate report by proptech firm InfoTrack found only 29 per cent of respondents said rates had a significant or considerable impact on their decision — a sharp drop from 62 per cent in 2024.
“In last year’s report, two-thirds cited interest rates as a major factor influencing their decision-making process. But in 2025, that number has dropped significantly,” InfoTrack’s head of property Australia, Lee Bailie, said.
“The finding challenges the idea that interest rates are stopping people from buying or selling. Instead, Australians are staying active in the market but adapting to current conditions.”
Almost half of homebuyers weren’t impacted by interest rates at all, the research found
For those affected by rates, the biggest impacts were on budget (43 per cent) and the type of property they could afford (32 per cent).
The move comes as the ASX traded at a 51 per cent expectation of a 0.5 percentage point cut to the official cash rate to 3.35 per cent when the Reserve Bank of Australia (RBA) meets Tuesday.
It’s a bolder prediction than any of Australia’s big 4 banks, with CBA, NAB, Westpac and ANZ all sitting on a 0.25pp decrease.
Bendigo Bank’s chief economist David Robertson predicted quarterly cuts down to around 3-3.25 per cent by February 2026.
“A month of from the RBA surprising markets by keeping rates on hold, insisting they wanted more evidence of moderating inflation, we’e seen nothing but confirmation that inflation is at or below its target of 2.5 per cent, and that the risks of any rebound in underlying inflation have receded further,” Mr Robertson said.
Housing affordability is now the biggest concern for buyers
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InfoTrack’s report shows affordability has now overtaken rates as the biggest hurdle, with 27 per cent of participants nominating property prices as their greatest obstacle, up six per cent from 2024 and the largest rise of any challenge.
More than half (54 per cent) said prices had a significant or major impact on their decision, while 69 per cent said it determined where they bought.
The report also found 59 per cent of buyers and sellers completed their transaction within three months, with regional areas proving especially popular with NSW buyers seeking affordability, space and flexibility through hybrid work.
Governor Michele Bullock is expected to cut rates when the RBA next meets
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