More first home buyers are entering the market, with new home loan commitments for owner-occupier first home buyers up 12.8% in July 2024 compared to last year, according to the Australian Bureau of Statistics (ABS). 

This increase reflects growing confidence among first home buyers, who now account for a larger share of overall loans. 

Five factors, including market conditions and government incentives, are providing opportunities for first home buyers to purchase property.

Property price growth slowing

The growth in dwelling values has slowed, offering potential opportunities for first home buyers to enter the market at a more favourable price point before the market heats up again. While property prices remain high, the latest CoreLogic home value index showed values increased 7.1% in the 12 months to August, compared to 7.6% the previous month.

Supportive government schemes

Housing Australia’s Home Guarantee Scheme helps first home buyers enter the market sooner by guaranteeing up to 15% of the property value, allowing you to enter the market with just a 5% deposit and avoid lender’s mortgage insurance. 

State-specific schemes, like the First Home Buyers Assistance Scheme in New South Wales, gives buyers a full or partial exemption on stamp duty.

Stable job market

With steady employment and wage growth, many first home buyers may feel secure in their financial position, making it easier to commit to long-term commitments like a mortgage. In August, the unemployment rate held steady for the second consecutive month at 4.2%, according to the ABS.

Potential for a rate cut

There is growing speculation about a potential rate cut, likely in early 2025, according to some economists. While interest rates have risen considerably over the last two years, there are indications that the Reserve Bank of Australia may start to ease monetary policy to stimulate the economy.

Increased listings

According to PropTrack, the total number of listings available in August of this year was 4.5% higher than the same time last year. This has led to more choices for buyers and a greater chance of finding a property to suit their needs and budget.

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