Opinion

Australia on verge of house price boom: economist

History suggests that once the RBA starts cutting, property fever hits quickly. One prominent expert says a 10 to 15 per cent price rise is coming.

Michael ReadEconomics correspondent

Updated May 18, 2025 – 12.24pm, first published at 12.04pm

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Michele Bullock is almost certain to cut the cash rate to 3.85 per cent on Tuesday, and if there’s one thing Australia’s housing market loves, it’s cheaper money.

Financial markets aren’t stopping at one. They’re pricing in two more cuts by December – taking the cash rate to 3.35 per cent – and another by mid-2026.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS.