First-home buyers in Australia are being encouraged to buy sooner rather than later due to current friendly market conditions.
The Reserve Bank of Australia’s anticipated interest rate cut to 4.1% last month, home buyer confidence has risen across all states, according to the PRD Australian Economic and Property Update.
PRD chief economist, Dr Diaswati Mardiasmo said the rate cuts could create a frenzy in the market, benefiting home buyers, businesses and investors.
“Home buyers will have access to a slightly higher borrowing amount, which will assist with competing in an undersupplied market,” Dr Mardiasmo said.
The highest rates of growth on the time to buy a dwelling index are in Victoria (43%) and in South Australia (32.8%).
Housing prices also moderated more than expected in the December quarter, especially in Melbourne and Sydney. Despite this, Brisbane, Perth, Adelaide and some regional areas continued to see price growth.
According to the PRD Australian Economic and Property Update, while there has been a 1.3% decrease in the number of homebuyers, they are most active in the Northern Territory, South Australia and Queensland.
While cost-of-living continues to be an issue plaguing Australians in the real estate market, PRD managing director, Todd Hadley said these are key issues in the upcoming Federal Election.
“This event does create some uncertainty in the market, but it also brings opportunities.” Mr Hadley said.
Good news has been brought to buyers as detached housing projects have picked up over 2024, however, units remain dominant in ready-to-sell stock across most capital cities.
Despite current conditions looking good, Dr Mardiasmo said the window for first-home buyers is narrowing.
“The market is shifting slowly but steadily, and first-home buyers need to move quickly to take advantage of more favourable conditions before a potential market frenzy pushes prices higher,” Dr Mardiasmo said.
Dr Mardiasmo also pointed out that the upcoming federal election could slow down activity.
“During this time, it is normal for many things, including the cash rate, to be held steady. This creates a multiplier effect on people’s spending habits and the property market,” she said.
