The decision of the Reserve Bank of Australia is seen as potentially uplifting market sentiment to some extent, attracting more homebuyers back into the market. Economists widely anticipate that the RBA may commence rate-cutting actions later this year, bringing a glimmer of hope. Experts note that the decision to maintain the interest rate, coupled with declining inflation and expectations of future rate cuts, is likely to bolster confidence, spur housing demand, and potentially drive up house prices.

However, with interest rates remaining at relatively high levels for an extended period, some existing homeowners may face greater economic pressure, leading to an increase in distressed properties. Data shows that over the past year, there has been a rise in the number of distressed properties listed in New South Wales, Victoria, and the Northern Territory. This situation has raised concerns among some experts, who believe that mortgage pressure may continue to increase, gradually depleting the savings buffer of some households.

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Warren Hogan, Chief Economic Adviser at Judo Bank, suggests that while the Reserve Bank of Australia has not explicitly stated what actions it will take, there are signs of a softening in its tone. He believes that this shift may be interpreted by the market as a signal of the end of the rate-hiking cycle, with the next step possibly being rate cuts. Meanwhile, John McGrath, CEO of McGrath Real Estate Group, also points out that pausing the rate hike may help some homeowners hold onto their properties, but it also begins to reveal some pressures.

Against this backdrop, experts generally believe that as the possibility of rate cuts increases, some potential homebuyers may attempt to enter the market before the rate decrease, hoping to enjoy the benefits of early house price appreciation. However, for households still struggling to maintain, prolonged high-interest rates may pose greater risks, potentially prompting them to sell their properties.