Remember the movie Inception? The whole story isn’t about what’s real or not, it’s about how people perceive reality, and how that perception shapes every decision they make.
The same goes for property. The market isn’t just about the numbers on a loan document or the Reserve Bank’s official cash rate. It’s about how people feel when those numbers change — and those feelings can be just as powerful as the financial facts themselves.
When interest rates move, the headlines light up. Buyers and sellers talk about ‘opportunity’ or ‘risk’.
And while the numbers matter, they’re only part of the story. The other part, often the bigger one, is the psychological response they trigger.
Because even if borrowing power technically improves when rates drop, people don’t always rush out and buy. And when rates rise, they don’t always stop. Instead, they interpret the change through the lens of their own confidence, circumstances, and outlook on the future.
Perception drives decisions
At Presence, we’ve watched rates rise and fall across decades, and while the financial side shapes what’s possible, the mindset side shapes what actually happens.
Sometimes, a rate cut triggers optimism; buyers feel the market will get hotter, so they move quickly to get in ahead of others. Other times, the exact same rate cut sparks hesitation; people worry the economy must be weakening, so they hold back.
It’s why you can’t assume a ‘better’ borrowing capacity equals a better selling environment. The human element — confidence, fear, ambition, caution — doesn’t move in straight lines with the cash rate.
And this matters for sellers because market conditions are made up of both what people can do and what people think they should do.
When you understand both, you can time your sale more intelligently and market more effectively.
Psychology can work in your favour
In our experience, some of the most effective selling moments happen not when rates are lowest, but when sentiment is strongest.
Strong sentiment means:
- Buyers believe prices will rise and want to get in early.
- They feel secure in their jobs and future income.
- They see value in acting now, rather than waiting.
This sentiment can occur in a rising, stable, or even slightly falling rate environment, depending on the wider story people are telling themselves about the economy and property.
Psychology can work against the numbers
On the flip side, even if rates are low, if news cycles are negative or uncertainty is high, buyers can stall. They may worry about overpaying, about further falls in prices, or about hidden pressures in the economy.
For sellers, this means one thing: don’t just watch the Reserve Bank announcements, watch the mood in the market, that’s exactly what our expert agents are doing!
What the market is doing right now
If you’re wondering how this applies today, here’s what we’re seeing:
- Rates have eased slightly this year, but the biggest driver of buyer activity has been stability in the cash rate, not the size of the cut. That stability has had a strong impact on perception and how positive buyers are feeling.
- Buyer demand remains steady in Newcastle and Lake Macquarie for well-presented, move-in ready homes; a sign confidence is holding.
- Listings remain below long-term averages, meaning less competition for sellers.
- Auction clearance rates are consistently healthy, suggesting buyers who are active are also motivated.
The environment is neither frantic nor flat which means opportunities exist for sellers who position their property well, and for buyers who want to secure something before sentiment shifts again.
Why waiting can backfire
Just like in Inception, where the dream keeps shifting, the market is a moving target. Waiting for the ‘best’ rate environment can mean missing the window where confidence and competition are working in your favour.
By the time the numbers look perfect on paper, the psychology may have moved on and with it, your best buyer pool.
If selling is on your mind
The best time to start planning is before you need to react. Even if you’re not ready to go live, we can help you read the mood of the market as well as the money, so when you decide to sell, you’re working with both in your favour.
Rates matter. But perception matters more. And the smartest sellers know how to sell into both.
