Sliver of Hope for First-Home Buyers in Australia
First-home buyers may find a rare chance to enter the market as prices stall and interest rates remain high, creating a unique buying opportunity.
Australia, First-Home Buyers, Housing Market, Interest Rates, Sydney, Melbourne
Australia: First-home buyers might catch a break soon. It looks like they’ll have a little window to buy before interest rates drop and the market heats up again in 2025.
Experts say that home prices are expected to slow down at the start of the year, which could help those who’ve been struggling to get into the market.
Cameron Kusher from REA Group thinks the housing market will take a breather early next year. He mentioned that with prices not rising as fast and more homes available, it could be a good time for buyers.
He pointed out that many capital cities are seeing more homes listed for sale, which is a change from the past few years. This could make it easier for first-time buyers to find something they like.
Even though there’s a chance for new buyers, overall, house prices are still expected to rise a bit. The PropTrack Property Market Outlook predicts a 1 to 4 percent increase in national home prices.
That’s not as high as the nearly 7 percent growth we saw last year, but it’s still something. Major banks are on the same page with these predictions.
In Sydney and Melbourne, things might be a bit different. Prices there could actually drop as more people look to sell their homes.
ANZ and NAB have updated their forecasts, expecting modest growth in capital city prices. But with high interest rates and rising unemployment, the market might stay a bit shaky.
Dr. Shane Oliver from AMP thinks prices will stall next year, especially since interest rates have been high for a while now. He believes that once rates start to drop, we might see a slight increase in home prices.
As for the timing of those rate cuts, it’s still a bit uncertain. Money markets are betting on a cut by April, but some economists think it might not happen until May.
With more homes available, buyers are feeling less pressure to rush into a purchase. This means properties are sitting on the market longer, which could help first-home buyers find a good deal.
While the national market is looking up, Sydney and Melbourne might not follow suit. In Sydney, prices are expected to grow slowly, while Melbourne could see a slight decline.
Overall, it’s a mixed bag for the housing market, but first-home buyers might just find their moment to shine.