Rate cuts vs rising costs – the tug of war facing buyers in 2025

The cash rate is finally easing.

Buyers should be racing back to the market.

Except…they’re not. Not really.

Open homes are busy, sure.

First-home buyer enquiry is climbing (thanks, RBA).

But there’s hesitation in the air.

Interest rates may be dropping, yet buyers are still moving like they’ve got bricks in their shoes.

So, what in the holy guacamole is going on?

This is the new tug of war in 2025: rate relief pulling buyers forward…and rising living costs dragging them right back again.

Hang on…aren’t buyers coming back?

Yes…enquiry is rising, but enquiry doesn’t always equal urgency.

@realty’s June 2025 Property Market Report shows open home numbers and enquiry volumes have lifted since the rate cuts, yet days on market aren’t budging much – a strong sign buyers are shopping, not signing.

Why are people still dragging their feet?

1. Money is still tight (even with cheaper debt)

Sure, mortgages are relaxing.

But have you seen the price of lettuce lately?

ABS data for May shows food and non-alcoholic beverages rose 2.9%, rents climbing 7.7% and health/insurance costs up over 4% YoY.

So, buyers are doing that fun mental maths: Yes, I can borrow more…but can I actually live once I move in?

2. Fatigue from the rate rollercoaster

Buyers aren’t panicking over RBA decisions the way they used to.

As realestate.com.au reports, “Almost half of homebuyers weren’t impacted by interest rates at all… those who were said the biggest impacts were on budget (43%) and the type of property they could afford (32%).”

3. Affordability keeps buyers cautious

As Cotality’s Research Director Tim Lawless explains, “Today’s 25bp rate cut will improve capacity and support confidence…but affordability challenges are likely to keep a lid on price growth.”

What does this mean for sales agents?

You’re not dealing with broke buyers – you’re dealing with cautious ones.

That changes the playbook.

Out go fear-based “beat the rate rise” tactics.

In come tighter follow ups, softer scripts…and a whole lot more empathy.

Tactics that are working right now

Lead with lifestyle outcomes, not cash-rate commentary

Upsizers, downsizers and seachangers don’t move because of the RBA – they move because life is happening. So, talk lifestyle, not monetary policy.

Reset vendor exceptions (early)

Vendors think “rate cuts” = 2021 prices again. Nope!

Use data (like median days on market, local comparables) to bring expectations back to earth.

Shorten your follow up window

Cautious buyers look for any excuse to stall.

If you’re not calling within 24-48 hours post-inspection, someone else is.

Get creative with contact conditions

Longer settlements, pest/building clauses, softer finance exit lines – all help reduce fear in a jittery cost-of-living landscape.

Why Reapit Sales gives agents the edge

If buyers are slower and more distracted, you need to be quicker and more disciplined.

Reapit Sales helps you:

• Track OFI engagement and buyer engagement across touch points
• Trigger automated follow-up tasks so warm leads don’t go cold
• Use buyer data in Analytics+ (take a sticky beak here) to strengthen vendor conversations during campaigns

Yes, rate cuts are welcome but living costs are still biting.

Great property will move in 2025.

The reality? Agents who read the tug of war, adjust their follow up game, and manage expectations with empathy are the ones getting deals done.