In its October 2025 statement, the Reserve Bank of Australia (RBA) announced it will keep the cash rate unchanged at 3.60%, maintaining its cautious stance amid easing inflation and softening household spending. For buyers, sellers, and investors in Sydney’s Inner West, this decision offers a moment of stability—and strategic opportunity.
Why the RBA Hit Pause
The RBA Board noted that while inflation is gradually declining, it remains above the target range. Holding the rate allows time to assess the impact of previous hikes and monitor labour market shifts. With unemployment edging up and consumer demand cooling, the central bank is prioritising balance over bold moves
Inner West Market: Stability with Upside
Suburbs like Leichhardt, Rozelle, Drummoyne and Concord have felt the ripple effects of rate hikes over the past year—slower price growth, cautious buyers, and tighter lending. But with rates on hold, confidence is creeping back.
✅ For Buyers
- Borrowing power stabilises, making it easier to plan and act
- Less urgency to “beat the next hike”, allowing more considered decisions
- Renewed interest in development-ready sites, especially under NSW’s new housing policy
✅ For Sellers
- Price resilience returns, especially in tightly held suburbs like Russell Lea, Wareemba, and Canada Bay
- More active buyer pool, particularly among upgraders and downsizers
- Opportunity to market lifestyle and location, not just affordability
✅ For Investors
- Rental demand remains strong, with Inner West proximity to transport and universities
- Holding costs stabilise, improving long-term yield outlook
What to Watch
- The RBA hasn’t ruled out future hikes if inflation stalls
- Lending criteria remain tight, especially for first-home buyers
- Stock levels are still low, supporting prices in high-demand pockets like Balmain, Chiswick, and Putney
📞 Ready to Make Your Move?
With interest rates holding steady and buyer confidence returning, now is the time to explore your options in Sydney’s Inner West. Whether you’re seeking a character home, a development-ready site, or a lifestyle upgrade, Sandra Lyon offers expert guidance and local insight to help you buy with clarity and confidence.
Contact Sandra today to discuss your goals and uncover the right opportunities.