The number of auctions being held over the next two weeks is set to skyrocket as sellers look to cash in on the Reserve Bank’s interest rate cut.

The RBA reduced the official cash rate by 25 basis points on Tuesday, providing relief for existing mortgage holders but also increasing the borrowing power of prospective buyers, which is expected to push up house prices.

Sellers are clearly looking to take advantage of the expected price surge, with the number of scheduled auctions rising steeply this weekend, particularly in the two largest property markets.

According to real estate data firm Cotality (formerly known as CoreLogic), 2395 homes are scheduled to go under the hammer this week, a 34.2 per cent rise from last week and up 5.8 per cent from the same time last year, when interest rates were half a percentage point higher.

The increase is even sharper in Sydney, up 44.7 per cent week on week to 803 auctions, while Melbourne will host its most since Easter.

“For the first time in six weeks, Melbourne’s scheduled auction numbers are set to exceed 1000 this week, with 1152 homes scheduled to go under the hammer,” Cotality economist Kaytlin Ezzy said.

“Last week saw 890 homes auctioned, while this time last year, 1087 auctions were held across the city.”

Cotality is expecting the number of auctions across the country to increase even further to about 2700 the following weekend.

The Reserve Bank’s decision to cut the cash rate to 3.85 per cent effectively increased the average Australian’s borrowing power by $12,000, and the average couple’s by $23,000.

However, with economists expecting at least one more cut by August and another by early 2026, and the RBA’s first cut from February already in the bank, someone on the average wage could enter next March with $50,000 extra in borrowing power compared to the start of this year.

“Prospective buyers will get another boost to their maximum borrowing capacity as a result of this week’s cash rate cut, however, it’s unlikely to help them get a foot on the property ladder faster,” Canstar data insights director Sally Tindall said.

“When buyers see their maximum borrowing budgets rise at the same time, on the back of a policy change or a cash rate cut, the biggest winner in the equation is often the person selling the property.

“This cut will be a shot in the arm for the property market.

“However, if homeowners aren’t equally encouraged to list their property for sale, then a surge in demand could see property prices rise even further.”