Is now a good time to buy a home?

Consumer confidence in Australia’s property market has strengthened, with new data showing more than one in three Australians now consider it a good time to buy a home.  

According to Finder’s latest Consumer Sentiment Tracker, 36% of respondents believe market conditions are favourable for purchasing property, marking a steady rise from 29% in May 2024 and 25% in May 2023. Analysts suggest this growing optimism may be tied to falling mortgage costs.  

The sentiment is particularly strong among Generation Y and baby boomers, with 42% in both cohorts expressing confidence in the current buying climate.  

In parallel, Finder’s review of Australian Bureau of Statistics data shows the number of loans approved for owner-occupiers climbed to 72,991 – a 4.1% increase compared to the same period last year. The average loan size has also gone up, rising 8.3% year-on-year to $659,920. 

The latest Finder RBA Cash Rate Survey of 33 economists and property experts indicates that a majority (56%) anticipate interest rate cuts in both July and August, potentially lowering borrowing costs further. Fixed rate mortgage products are becoming increasingly competitive, with the lowest five-year fixed rate now at 5.29%, two-year fixed at 4.99%, and variable rates as low as 5.49%. 

“Lower repayments will be felt by June, and buyer demand is heating up as borrowing costs fall,” said Richard Whitten (pictured above), money expert at Finder. “This could mean prospective buyers have less flexibility when negotiating a price as demand spikes. The forecast to cut the cash rate two more times by Christmas will improve sentiment even more.”  

He also noted that some sellers may delay listing their homes in hopes of better market conditions, which could limit supply and place upward pressure on prices.  

“The latest cash rate cut is expected to bolster consumer confidence further in the housing sector, as lower borrowing costs make property investment more accessible,” Whitten said. “The reduced cost makes real estate a more attractive asset class. Getting the very best interest rate, keeping the repayment amount above the monthly minimum and increasing your repayment frequency to fortnightly will help you become debt-free faster.”  

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