With the Reserve Bank of Australia yet to explicitly indicate future policy directions, economists have been making various forecasts regarding interest rate cuts. Shane Oliver, Chief Economist at AMP, expects the central bank to begin cutting rates in the second half of this year, while NAB predicts the first rate cut to occur in November 2024. Such speculation about expected rate cuts has sparked market speculation and discussion, with some experts even suggesting that Melbourne may experience a new peak in home buying.

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On the other hand, seller confidence in the market continues to rise, resulting in a significant increase in new housing supply. According to the latest data, the number of new housing listings nationwide has increased by 16.6% year-on-year, reaching the highest level since 2012 in capital cities. However, despite a substantial increase in home buying options for buyers, they still face fierce competition due to the limited overall housing supply.

In addition to changes in the housing market, the rental market is also experiencing a series of new issues. National vacancy rates have dropped to a historic low of just 1.07%, a 60% decrease since March 2020. The decline is particularly pronounced in Sydney and Melbourne, where rental affordability for residents is increasingly compromised. With a shortage of rental properties, some tenants may opt for longer leases or consider purchasing homes to ensure housing stability.