One couple is hoping predicted interest rate cuts will drive demand for the home they are selling before prices possibly climb even higher.
Emma and Brendon Williams bought their first house in Acacia Ridge back in 2019. After extensive renovations, the pair are now selling it, and will use the money from the sale to help pay off the loan on their new home in Golden Beach.
“Our ideal vision has always been to move to the coast,” Mr Williams said. “[24 Hanify Street] was a five year plan to make a bit of money to be able to afford to do that.”
Emma and Brendon Williams with their dog, Murphy. The three are looking to move closer to the Sunshine Coast, after selling their home at 24 Hanify St, Acacia Ridge. Picture: John Gass
Australian banks indicate four interest rate cuts could happen over the next twelve months. When compared to Ray White data showing the impact of cuts in the 2010s, this may suggest a rise in home prices by up to four per cent, with increases of $91,000 in some suburbs.
In Acacia Ridge, which had a property median of $759,883 in September, there would be an estimated rise of $2,934 dollars.
But Place Annerley agent Zac Fields said this may come with an increased supply of houses for sale, with more sellers recognising they can get more for their homes.
“If you look at what the 2022 market was when the increases [in interest rates] started happening, a lot of people weren’t choosing to put the property on the market,” he said. “That same logic could be applied … [people] are probably going, ‘Okay, well maybe now’s a good time to consider it.’”
Mr Fields said suburbs like Acacia Ridge have a big future for development, and rate cuts could encourage more investment in the area.
“As that new supply comes up, I feel the demand will rise to meet it with new incentives like interest rate cuts,” he said.
The couple hope new home buyers will be incentivised by interest rate cuts to be more confident in buying homes like theirs. Picture: John Gass
Having already bought their Sunshine Coast home, the Williams family feel the rise in home prices will be vastly outweighed by the incentive to purchase while interest rates are lower.
“We’re in a position where rate cuts or the price of a home is kind of in our favor,” Mr Williams said.
“Acacia Ridge is one of those suburbs that is starting to move up a lot. So I’m hoping that the rate cuts will … give a bit of confidence to buyers to purchase homes at prices these days.”
The Williams’ home at 24 Hanify St will go to auction on October 18. Once the sale is finalised, the pair will move into their home in Golden Beach, where they’ll begin a renovation project once again.
“It’ll be our home for a very long time,” Mr Williams said.
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