Why May’s inflation result is the signal property buyers have been waiting for
Inflation Hits 2.1% — The Lowest in Years
The latest inflation data just dropped for May, and it’s a big one. The official figure? 2.1%. That puts us smack bang in the Reserve Bank of Australia’s target zone of 2% to 3%. In fact, we’re right near the bottom of it.
That means one thing: Interest rate cuts are locked in for July.
This Isn’t Just Talk — It’s Certainty
At the June summit, we said interest rates were heading down.
Now we’ve got confirmation.
Even the underlying inflation — which strips out the volatile stuff like fuel and fresh food — came in at 2.4%. That’s still within target. That’s still more good news.
The RBA has no choice now. Inflation is under control, so the pressure is on to stimulate the economy again. And the first move they’ll make? Drop the cash rate.
How Low Will Rates Go?
The official forecasts suggest we’re heading for the mid to low 2s for the cash rate. That means you’ll soon be seeing mortgage rates starting with a 3.
Yes — three.
We’re talking serious relief for homeowners. For anyone paying big interest on loans, this could mean hundreds of dollars a month back in your pocket.
So What Does That Mean for Property Buyers?
Simple: You’ve got to make moves. Now. Because when rates drop, demand explodes. Buyers flood the market. Property prices rise.
So if you’re sitting on the fence — wondering about your first home or next investment — this is your moment. Because in six months’ time, today’s prices will look cheap.
Final Word: The Window Is Open
The inflation data is exactly what we needed. Rates will fall. Prices will rise.
So if you’ve been struggling with repayments, if you’ve been holding back, or if you’ve just been waiting for the right time…
This is it. Time to take massive action.
And if you’re wondering what’s left to buy — we’ll help you find it.
