“It’s a reminder that housing markets respond to a broad range of factors beyond changes in the cost of debt,” she said.

“In Perth and WA,market values were far more influenced by the boom-and-bust conditions in the mining sector than movements in the domestic cash rate target.

“Interestingly,WA saw virtually no response in the trajectory of home value to higher interest rates,which has further demonstrated the loose relationship between the cash rate and property values in these states.”

Limnios Property Group managing director James Limnios said higher salary levels in WA meant the local property market was better placed to take advantage of a predicted fall in interest rates compared to other States.

The latest ABS figures showed adult weekly full-time ordinary earnings in Western Australia were the highest of any state in Australia at $2094.

This salary level compares to New South Wales at $1935,where the median price of a house in Sydney is $1.19 million,compared to Perth’s median of just $813,016.

“Over the past three years,a bonanza in highly paid jobs had propelled the median price of a house in Perth to surge by over $340,000 due to migrants flocking to WA to take advantage of our booming state economy,” Limnios said.

“Based on continued strong employment,wages and population growth in WA combined with a continued shortage of homes,the median price of a house in Perth could comfortably rise by 25 per cent within the next three years to above $1 million.”

Finance and money expert Chris Foster-Ramsay said the anticipated interest rate cuts were expected to fuel property growth nationwide,but foreshadowed a short pause in growth between Easter and June,coinciding with a federal election.

“Borrowers should keep a close eye on developments over the next three to six months,” he said.

“Interest rate changes and housing policies during and after the federal election will be crucial factors shaping the market”.

Senior mortgage broker Romy Dhungana warned a rate cut could trigger inflation and spark another rate hike.

“I think it is possible that a rate cut could lead to a rebound in inflation,which could eventually prompt the RBA to increase rates again,” he said.

“A lower interest rate makes borrowing cheaper,encouraging spending,investment,and demand for goods and services. If this results in overheating demand,inflation could rise again,putting pressure on the RBA to act. This could lead to a volatile environment in the medium- to long-term.”

Dhungana said if the property market was showing signs of strong growth or increased competition,waiting for the rate cut might mean a missed opportunity.

“Lower interest rates may not immediately lead to an affordability boost,and in some markets,property prices may continue to rise despite the rate cut,” he said.

“On the other hand,waiting for the rate cut may offer more affordable borrowing options and better purchasing power.”

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