‘Pissed’: Barefoot Investor takes aim at RBA amid predictions housing prices set to soar after rates cut

A leading finance guru says young Ausssies should be “pissed off” by the RBA’s decision to cut the cash rate, offering a grim prediction about the housing market.

Young Aussies doing away with the smashed avocado and scraping together pennies for their first home should be “pissed off” by the Reverse Bank’s decision to cut the cash rate again. That’s the message from experts who agree that house prices could rise by up to 10 per cent in the coming months as a result of the decision.

The RBA decided to cut the cash rate on Tuesday afternoon by 25 basis points to 3.85 per cent, providing much-needed relief to homeowners.

The RBA delivered much-needed interest rate relief to mortgage-holders on Tuesday. Picture: NewsWire / Gaye Gerard

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The widely anticipated move was the second reduction of the year for the cash rate, now at its lowest since May 2023.

However, SQM Research managing director Louis Christopher said the rate cut would send auction clearance rates soaring, predicting property prices to rise 10 per cent by the end of the calendar year.

Mr Christopher said first-home buyers needed to get in before the back end of 2025.

“It is very likely housing prices will rise from here and continue into 2026,” Mr Christopher said.

“From today’s rate cut and the one in March, first home buyers are in a better buying position compared to six months ago.

“Their purchasing and borrowing power has increased. However, if I am right about price rises, they will need to move quickly, otherwise they will be back to square one on affordability.”

Finance guru Scott Pape (with wife Liz) has slammed Albo’s five per cent deposit scheme Picture: David Geraghty,

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Barefoot investor Scott Pape said that while the rate cut would help those trying to pay off their mortgage, it would also see more of the “wrong people” get into the housing market.

“If I was a young person right now I would be pretty pissed off,” Mr Pape told news.com.au.

“Every time a young person gets close, it just keeps getting more expensive.”

Mr Pape also slammed the Albanese government’s five per cent deposit scheme – which will come in from January 1 next year – saying it would do “a lot of damage”.

“It’s stupid, totally stupid,” Mr Pape said.

“People shouldn’t be buying a home in one of the most expensive cities in the world if they can’t afford it.

House prices are set to soar by the end of the year. Picture: NewsWire / Max Mason-Hubers

“I don’t understand how a responsible government can stand by and say this is a good thing.”

The second rate cut came after inflation data released late last month showed the all-important trimmed mean inflation, which came in at 2.9 per cent for the March quarter, down from 3.3 per cent in the December quarter.

It was the lowest annual inflation rate since December 2021 and fell back within the RBA’s 2 to 3 per cent target range.

The RBA has left the door open for further rate cuts, saying the outlook for inflation is that it would sustainably fall into the target band.

“Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the board said.

Originally published as ‘Pissed’: Barefoot Investor takes aim at RBA amid predictions housing prices set to soar after rates cut