I know what you’re thinking. The world feels a bit wobbly right now and every time you check the news there’s something new to worry about. If you’re a first home buyer sitting on the sidelines waiting for things to settle down before you make your move, I understand the instinct.
But that uncertainty is working in your favour right now. And I don’t think it’s going to last forever.
No FOMO. And that’s a good thing
I was talking to a real estate agent I know just the other night. I asked him what he was seeing when buyers come through open homes. His answer was telling. Buyers are arriving with a list of what they want in a property — maybe ten things on the list — and if a place is missing two of them, they walk. They just go and find another one.
Think about what that means. There’s no panic. No bidding wars. No lying awake at night wondering whether you made a rushed decision. The pressure that used to send first home buyers scrambling to make offers on properties they weren’t sure about, simply isn’t there right now.
It also means vendors must prepare their property well because buyers aren’t afraid to walk.
Mum and Dad investors are quietly offloading
There’s another dynamic which economist Tony Alexander wrote about back in April. Mum and Dad investors — the ones who picked up rental properties over the years — are starting to offload them. At first glance you might think that means more competition for first home buyers. Actually, it means the opposite.
The properties these investors want to sell are in the lower price brackets — exactly the range that first home buyers are shopping in. More of those properties coming to market means more options, more negotiating room, and less chance of missing out.
More supply in the price bracket you’re looking in. That’s a tailwind, not a headwind.
On the numbers
Yes, rates are higher than they were at their low point in November last year. But let’s put it in context. While we’re not at the absolute bottom of the cycle anymore, we’re still in affordable territory by recent historical standards. Money is not dirt cheap, but it is more affordable than it was twelve months ago. When you set that against the absence of FOMO, the increased supply, and the lack of competitive pressure — the overall picture for first home buyers is still firmly positive.
The window is still open. And I think it should be used now.
But please — don’t do this back to front
Here’s my one serious caveat, and it matters. None of what I’ve just said is an invitation to rock up to open homes on Saturday morning before you’ve done your homework. The conditions being good doesn’t mean the process is optional.
Before you fall in love with a property — and you will fall in love with one, that’s just how it works — you need to know what you can borrow. You need to have been through the assessment process. You need pre-approval sorted so that when the right place comes along, you can move with confidence rather than scrambling to figure out your finances while someone else snaps it up.
I wrote about this in a previous newsletter, and the message still stands. The market being in your favour is only useful if you’re ready to act when the moment arrives.
So if you haven’t yet figured out your borrowing capacity, that’s where we start. Get in touch and we’ll work through it — so that when you find the right place, you’re ready.