With inflation on target - here's what I'm telling buyers and sellers to do right now

By Redom Syed, Managing Director and Co-Founder of Flint Group

After years of economic uncertainty and aggressive rate hikes, we've finally hit a turning point.

As Managing Director and Co-Founder of Flint Group, one of Australia's fastest-growing mortgage brokerages, and host of Australian Property Talk podcast, each week, I speak to thousands of Australians navigating the property market - from first-time buyers to seasoned investors - and right now, there's one message I'm sharing with all of them: the tide is turning, and it's time to get prepared.

Inflation is officially back on target

Inflation has cooled, and that's a milestone that could reshape the property market in the months ahead.

In the June quarter, consumer prices rose at an annual pace of just 2.1 per cent, down from 2.4 per cent in March. More importantly, the "trimmed mean" measure of inflation - the Reserve Bank's preferred gauge of underlying inflation - fell from 2.9 to 2.7 per cent.

This puts inflation firmly back inside the RBA's 2-3 per cent target band for the first time in years and broadly aligns with the Bank's own forecasts released in May.

This shift changes the conversation. We're no longer talking about the risk of future hikes. We're now asking how soon rate cuts will arrive.

Borrowing power is set to rise fast

With two rate cuts already delivered, one more almost certain for August, and another three expected by this time next year, borrowers are set to benefit from a significant uplift in their borrowing power. Most estimates suggest an increase of more than 15 per cent.

As interest rates fall, serviceability buffers ease, monthly repayments drop, and previously constrained borrowers are able to access credit again. This can be a game changer, especially for upgraders, investors, and those who've been sitting on the sidelines waiting for the right moment to act.

If you were limited just a few months ago, now is the time to reassess. Lending conditions are shifting quickly and many buyers will find themselves in a stronger position than they expected.

Confidence is returning to the market

Inflation doesn't just influence monetary policy. It plays a powerful role in buyer sentiment.

Over the last two years, interest rate hikes, rising living costs, and general uncertainty caused many Australians to delay their property plans. But now that inflation is falling and the threat of further hikes is behind us, confidence is starting to return.

I'm seeing investors re-enter the market. Pre-approvals are rising. Enquiry levels are lifting across major capital cities. We're not in a boom just yet, but these are exactly the kind of green shoots that often signal early-stage momentum.

Property prices tend to move ahead of rate cuts

There's a well-known pattern in the Australian housing market: property prices tend to rise before the Reserve Bank makes its move.

That's because markets are forward-looking. Buyers adjust their expectations based on where interest rates are going, not just where they are today.

Now that inflation is under control, many buyers are acting early - securing property while conditions remain favourable and before competition heats up.

What I'm telling clients to do now

With inflation back in range and monetary policy set to loosen, the property landscape is changing fast.

This is the time to revisit your borrowing power. Many people who felt stuck earlier this year may now find they can access significantly more finance than before. Speak to a broker who understands the current environment and can help you position yourself strategically.

And most importantly, don't wait for the RBA to officially cut again before making your move. Markets tend to move early, and it's often the early movers who benefit most.

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Redom Syed is the Managing Director and Co-Founder of Flint Group, one of Australia's fastest-growing mortgage brokerages. A former economist at the Federal Treasury, Redom brings deep expertise in finance, lending strategy, and property markets. He is also the host of the Australian Property Talk podcast, where he helps everyday Australians make smarter investment decisions through data-driven insights and practical advice.