Is now the right time to buy your first home in Australia?

With recent months being infiltrated with news surrounding the Federal Budget, rising living costs, interest rates, and global tensions, it’s completely natural as a first home buyer to feel a wave of hesitation. And it seems many people are having the same concerns. Searches for ‘buying a house’ and ‘buying first home’ are down 45 per cent and 65 per cent respectively year on year, while searches asking if now is a good - or bad - time to buy a house are up more than 100 per cent year on year*.

Buyers are clearly looking for reassurance. And when the market feels quiet, the instinct for many is to step back and wait for a sign, or at least a positive news headline. But despite the outside noise, the Australian housing market hasn’t stopped just yet. The current period of uncertainty might just be the right window of opportunity for buying your first home.

Understanding the current property market

It’s easy to look at a quieter auction or a dip in open home attendance and assume the Australian property market has ground to a halt. But there is a big difference between a dead market and a stabilising one. Houses are absolutely still selling. Everyday Australians are still moving, upgrading, downsizing, and buying. Understanding that the market has shifted gears - and why - can restore your confidence as a first home buyer.

Following the Federal Budget changes to negative gearing and capital gains tax, it’s to be expected that property investors may take a temporary step back. Data from Loan Market shows that investor loan applications plummeted by 21 per cent in the month following the Budget announcement.

So is the slower market purely down to investor hesitation? Not quite. In the Ray White Now June report, the data shows that open home attendance was down to 2.43 per inspection in May from 4.32 in January. While investor hesitation may play a key part in the lower attendance, it’s also the cumulative effect of three interest rate rises on buyer confidence and capacity. With the borrowing power of the average buyer now reduced, many have paused out of sheer caution.

Furthermore, auction clearance rates sat at 56.1 per cent in May, but this lower rate doesn’t signify a collapsed market. Instead, it represents a clear shift in negotiating conditions, giving first home buyers more leverage than at any point in the last two years.

The opportunity for first home buyers

With investor activity cooled and auction numbers slightly softer, first home buyers are facing significantly less competition, particularly across established houses and townhouses. Instead of feeling rushed through a brief weekend viewing, you have the space to look closely at a property, ask the right questions, and negotiate with genuine confidence. You aren't competing with twenty other hands in the air at an auction; you might only be competing with two or three.

Traditionally, the property market responds heavily to clarity. Whenever the RBA makes an announcement, regardless of the decision, a sense of certainty returns to the market. Being informed on what’s happening in the market, speaking to your local agent and being as prepared as possible to ensure you’re ready to buy, could make all the difference in successfully securing your first home.

Stepping into the market with confidence

Understanding your position in the market and being properly prepared will further offer clarity, ultimately opening up your buying opportunities before you even step foot in an open home.

The question shouldn’t be about when is the right time to buy your first home, but more about how to be ready to buy your first home. Preparation is key.

Before falling in love with a home you may be priced out of, it’s important to get a clear idea on your budget, finances and home loan borrowing capacity. Ensuring you have pre-approval means you’re ready to bid at an auction and puts you in a strong position against the competition. Connecting with a broker at Loan Market can help you get a clear picture of this. Loan Market can compare over 60 lenders to help you secure competitive rates and find the right home loan for you.

With Federal Budget changes, interest rates and house prices dominating the headlines, it’s easy to get lost in property news. Your local Ray White agent can break down what’s truly happening in your preferred suburb, sharing what they’re seeing with recent sales and auction dynamics.

Utilising the incomparable insights of the Ray White Now monthly report, from average house prices and listing figures, to open home attendance and auction activity, they can give a clear outlook to guide first home buyers through a shifting market.

Outside noise may suggest first home buyers should pause and wait for the ‘right time’ to buy, but the reality is, the market hasn’t stopped. With less competition, steady transactional flow, and a gentler pace across the market, now could be the exact time you’ve been waiting for.

*Search insights from BrightEdge Volume data, June 2026