When the Reserve Bank met between 11-12 August, they unanimously voted to cut the cash rate to 3.6 per cent.

The move, which followed a surprise decision to hold the rate in July, means the cash rate is now the the lowest it has been since April 2023.

Those paying back a mortgage of $650,000 (approximately the size of the average Australian home loan) stand to save around $100 a month, should the banks pass the rate cut on to customers.

Those looking to purchase a home will now be able to take a seat seat at the negotiating table with a higher spending limit as a result of improved borrowing power.

So what does that mean for Mansfield Shire where the average property is currently taking 135 days on the market to sell, compared to an average of 55 days across the rest of regional Victoria, according to the Real Estate Institute of Victoria (REIV)?

Could the news of this rate cut, the third in 2025, stimulate the local housing market?

Toni Maynes, Director and Selling Principal of Canavan Ray White Mansfield, believes the market is already gaining momentum.

"With the two previous rate cuts in 2025 we saw a flurry of enquiries and this one is no different," she said.

"With this latest cash rate drop, we’re already seeing more buyers actively enquiring and organising to attend inspections

"We expect to see further momentum coming into spring, which is known as "the selling season" for a reason.

"Buyers and sellers will become more active, motivated by longer days and the desire to settle before the end-of-year period.

"And let’s be honest, everything’s nicer in spring - the flowers are blossoming, there’s often still snow on the mountain and the sun is shining.

"Who wouldn’t want to purchase a house in our area?

"We’re finding buyers remain incredibly price sensitive due to the cost of living, interest rates and other financial pressures.

"At present, we’re still mainly seeing one party of buyers per property rather than the 2–3 parties we’d ideally like.

"With interest rates trending down, we’re expecting a boost in buyer activity alongside an increase in new listings.

"The combination of more properties coming to market, growing buyer interest, and our beautiful surroundings could create strong momentum for both buyers and vendors heading into spring.

"2024 was a challenging year for both buyers and vendors, but the first six months of 2025 have shown renewed activity, which is very encouraging.

"May was an especially strong month, even bigger than during the COVID boom, which is fantastic.

"If the talk of potentially three more rate cuts this year becomes a reality, it would only boost activity further.

"Properties around the $800K mark are currently seeing the most interest, though demand is gradually creeping into the low $1 million range.

"Previously, holiday properties were largely out of reach for buyers, as banks were cautious about lending for second dwellings.

"We’re now starting to see buyers return to this segment, which is great for Mansfield given its popularity as a holiday destination.

"If you’re looking to buy or sell in Mansfield in the near future, now is an exciting time to be active in the market."

Peak Finance Broking's Jon Mongan labelled the third rate cut of 2025 as welcome relief for so many borrowers who have been feeling the pressure.

"The Reserve Bank’s decision to cut the cash rate by 0.25 points on Tuesday means interest rates are now the lowest we've seen in over two years," he said.

"On a $640,000 home loan, a decrease of 0.25 per cent will save you $100 per month and if you’re looking to buy; lower interest rates can mean your borrowing capacity has increased.

"A mortgage broker can let you know whether your lender will be passing the rate cut on to you and help check that your home loan interest rate is competitive in the current market.

"We can also calculate your borrowing capacity differently based on your individual circumstances.

"If you're already pre-approved, make sure you check in with your broker for an updated pre-approval."