High interest rates and rising home prices have impacted first home buyers entering the market in recent times, but has it stopped demand? This month we ask…

Opting for a range of options

First home buyers are choosing alternative options to invest in properties like rentvesting, buying with their mates, choosing guarantors, and, of course, accessing grants and first home buyer schemes.

It’s worth noting that the overall landscape for first home buyers has become more challenging due to rising property prices, hefty deposit requirements, and tighter borrowing rules.

Interest rate increases have also impacted borrowing power, making it tougher to enter the market. However still some home buyers are still positive especially if interest rate stabilises or reduces in future.

Niti Bhargava
Resolve Finance, Victoria

FHBs feeling more confident

Since the new year, I’ve noticed a significant uptick in first home buyer demand, which is an encouraging sign for the real estate market. It seems that confidence is gradually returning, likely buoyed by the stabilisation of interest rates.

With rates plateauing and, hopefully reaching their peak, first home buyers are feeling more secure in taking the leap into property ownership.

This resurgence in demand not only reflects a growing optimism but also highlights the resilience of the housing market despite recent uncertainties. It’s good to see more individuals and families realising their dreams of owning their first home.

Luke Whitbread
Mortgage Choice Erina

Keeping the dream alive

First home buyers remain committed to achieving their dream of owning a home despite challenges such as uncertain interest rate changes, inflation, skyrocketing prices, and tighter lending rules.

I’ve observed a significant shift in behaviour, with buyers proactively enhancing their financial literacy and focusing on budgeting to overcome obstacles.

A key trend I’m noticing is their focus on avoiding paying mortgage insurance to reduce costs. To achieve this, many are aiming to qualify for the First Home Guarantee Scheme or making a substantial effort to save for a 20 per cent deposit. Some families are even providing a non-refundable gift or family guarantee to expedite their children getting into the housing market sooner.

Additionally, instead of pursuing larger dream homes, first home buyers are opting for more affordable homes such as duplexes or units to benefit from mortgage stamp duty exemptions and to manage mortgage repayments effectively while maintaining their lifestyle.

Effie Nicol
Yellow Brick Road Earlwood

Renewed interest, signs of positivity

First home buyers are feeling more positive about the property market, thanks to the recent interest rate holds. This pause has given them a chance to understand their borrowing power and plan their finances with more certainty.

As a result, more inquiries and offers are being made, showing a renewed interest in owning property.

Government incentives and fewer pandemic-related economic uncertainties are also helping increase demand. Overall, first-time home buyers are feeling more positive and engaged in our conversations.

Matthew Hayes
Mortgage Choice Manuka