The start of 2025 presents an exciting opportunity for first-home buyers. With shifts in the property market and new trends emerging, now is the time to take action. Here’s why this year could be a game-changer for those looking to get their foot on the property ladder.
Home Prices Are Stabilising
After almost two years of consistent growth, CoreLogic’s Home Value Index (HVI) revealed that Australian home values fell by 0.1% in December 2024. This decline marked the end of a strong period of growth, offering first-home buyers a window of opportunity to enter the market before prices potentially rise again.
Even with this recent dip, home values increased by 4.9% across 2024, adding an average of $38,000 to the median home price. This stabilisation, however, is creating a more balanced market, particularly in areas that were previously out of reach for many buyers.
Affordable Markets Are Thriving
The most affordable quartile of properties experienced the strongest growth in 2024, with values up by 9.8%. This trend highlights a shift in demand towards more budget-friendly housing, providing first-home buyers with better opportunities to secure properties in accessible price ranges.
Mid-sized capitals such as Adelaide, Perth, and Brisbane showed exceptional growth last year but are now seeing more moderate increases. Adelaide led the pack in the December quarter with a 2.1% rise in values, while Perth and Brisbane followed closely. These markets remain attractive options for first-home buyers seeking affordability and potential for future growth.
Regional Areas Are a Solid Option
Regional housing markets finished 2024 stronger than the capitals, with a 6.0% annual growth compared to the capital cities’ 4.5% rise. Regions in Western Australia, South Australia, and Queensland recorded double-digit growth, making them appealing for buyers looking for more space and value.
For those considering regional areas, the combination of lower prices and strong growth trends makes this a great time to explore options outside major metropolitan hubs.
Rental Markets Are Slowing Down
The rental market, which saw significant increases in recent years, has started to ease. With the national rental index rising by only 0.4% in the December quarter, renting may no longer be as competitive or cost-effective as buying. First-home buyers can take advantage of this shift by securing properties and building equity rather than continuing to pay rising rental costs.
Low Supply Creates Opportunity
While some areas like Perth are seeing an increase in advertised property supply, others, such as Adelaide, are experiencing record-low stock levels. This scarcity in listings is maintaining strong demand in certain markets, encouraging buyers to act decisively. For first-home buyers, this means moving quickly when the right property becomes available.
First-Home Buyers Are in the Driver’s Seat
With affordability constraints pushing buyer demand towards lower-priced properties, first-home buyers are in a prime position to capitalise on market trends. The slowing growth in high-end property values further underscores the opportunity to secure a home at a more manageable price.
Additionally, the potential for future interest rate reductions in 2025 could improve borrowing capacity, making this an ideal time to prepare and purchase.
The Time to Act Is Now
2025 is shaping up to be a promising year for first-home buyers, thanks to stabilising prices, increased affordability in certain markets, and shifting trends in supply and demand.
For those ready to take their first step into home ownership, now is the time to explore options, seek advice, and secure a property. Remember, the earlier you buy, the sooner you can start building wealth and security for your future.
Take control of your property journey in 2025. Don’t wait for the market to leave you behind—start your search today and make your first home a reality!
