Why Waiting for a Rate Cut Could Cost You 10-20% More

BY CHRIS GRAY, CEO, YOUR EMPIRE

When the Reserve Bank of Australia surprised many by holding the cash rate steady instead of cutting it last week, plenty of buyers let out a sigh. After months of hoping for lower mortgage repayments, that long-anticipated rate cut didn’t arrive. But here’s the thing: whether the RBA cuts next month or next quarter doesn’t really matter if you understand how the market truly works.

Waiting for the Herd vs. Acting Early

Most buyers wait for official news – the big headline that rates have dropped, that money’s cheap again, that the worst is over. When they see that headline, consumer sentiment shifts overnight. Suddenly everyone is back at open homes, bidding at auctions, and stretching their budget just that little bit more. And that’s when prices move – fast.

What many forget is that the smart investors are always a step ahead. They know the real opportunity is before the first cut. Once the RBA signals the tide has turned, the competition floods back in and prices can jump 10%–20% in a matter of months. That means buyers who wait for certainty end up paying tomorrow’s prices, not today’s.

Winter: The Quiet Advantage

Now add winter into the mix. This time of year is already one of the quietest for property, especially in blue-chip suburbs. Continued over page

Many homeowners have jetted off to Europe chasing the sun. Listings drop. Auctions thin out. Yet motivated sellers remain – some hit by higher repayments, others feeling the squeeze of the cost-of-living crunch.

With fewer active buyers on the ground, there’s less competition. Sellers who need to move are more realistic on price. That’s when conservative, fact-based buying works best. It’s when we find quiet off-market opportunities, negotiate pre-market, and buy on valuation – not emotion.

The Missed Cut: A Hidden Opportunity

Right now, the headlines might look flat. The rate cut didn’t arrive – so sentiment stays subdued. For the average buyer, that’s a reason to pause. But for smart investors, it’s a reason to act. If you have your serviceability sorted and your pre-approval in pla ce, you’re in the driver’s seat while everyone else is still waiting for permission to move.

The reality is that the moment the RBA signals cuts are locked in, buyer confidence can snap back. And it won’t wait for spring. History shows us time and again that when the herd moves, prices can move fast – and by then, the quiet deals are long gone.

Buy on Facts, Not Emotion

At Your Empire, we never buy based on emotion. We never chase an auction result to "win." We buy based on conservative, bank-backed valuations and solid, proven fundamentals. While homeowners and emotional buyers talk themselves into paying "just a little bit more" – we negotiate hard and buy well below replacement cost where we can.

Interestingly, when we help our clients sell with our Vendor Advocacy service, we usually do recommend auction. Why? Because selling to emotional home buyers is the best way to get top dollar. But when you’re buying, the smart play is the opposite: negotiate privately, buy under the radar, and secure the asset before the crowds return.

Now Is That Window

So, if you’ve got your pre-approval ready, now is your chance to use the winter lull and cautious headlines to your advantage. There’s a narrow window to buy on your terms before consumer sentiment flips and the herd jumps back in.

For buyers who want an edge, a quiet conversation now can make all the difference later.

About The Contributor

Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney