The cost of property in Australia is going up and up. Last week, the Australian Bureau of Statistics revealed the average dwelling in the country is now valued at $1,002,500 – not the sort of news budding first home buyers want to hear.

It’s the first time the average house price in Australia has surpassed $1 million, rising by 5.9% in the March quarter. Western Australia, South Australia and Queensland were the main drivers of the rise, with Queensland reaching the second highest mean price in Australia, behind New South Wales. Predicting where interest rates may be headed in the next six to twelve months is tricky, especially with a certain Donald J. Trump in power in America. But to be fair, that part of what’s RBA Governor Michele Bullock and chief economics at the major banks get paid for. (So let’s see what they’re saying.)

In her May 2025 Statement on Monetary Policy, the board of the RBA said that “a slowing in global growth is expected to result in reduced demand for Australian exports and lower export prices, though these impacts will be mitigated by Chinese fiscal stimulus.” Governor Michele Bullock said that the current situation for Australia is “not just uncertain, it’s actually unpredictable” and so the range of outcomes from an international trade war could be “quite wide.” “I’m not putting a strong possibility on a really, really bad outcome, but I think we have to be alert that there might be,” she said.

Interestingly, the big four banks are all confident that interest rates will come down.

For example, the ANZ predicts a 25 basis point cut in August and a further 25 basis point cut next February, taking the cash rate to 3.35% by early 2026. The CBA predicts 25 basis point cuts in August and September, taking the cash rate to 3.35% by the end of the year. Also, NAB predicts 25 basis point cuts in July, August and November, taking the cash rate to 3.35% by the end of the year. And Westpac predicts 25 basis point cuts in August and November, taking the cash rate to 3.35% by the end of the year.

In the meantime, it’s always a good idea to shop around. There are hundreds of home loan products on the market, and you may find you’re better off in the long run with a better home loan lender, even if that means paying an exit fee to get out of your existing loan. (We’ll cover this topic in more detail next month).

Remember, when you choose C & R Settlements, you can use our free courtesy truck when it’s time to make the move. All you’ll need is a standard driver’s licence (and perhaps a few strong mates to lend a hand on moving day). Just be aware that our free courtesy truck is very popular, and bookings are essential. Just another reason to choose C & R Settlements in Mandurah.