The market is finding its footing. Here's what that means for you.
After nearly a year of rising interest rates, the Reserve Bank of Australia paused its cash rate hikes in April 2023. That decision shifted sentiment across the housing market almost immediately. The stabilising property market created genuine opportunities for first home buyers who had been sitting on the sideline. If you have been watching and waiting, now is a good time to understand what these market shifts mean for your situation. Use our borrowing power calculator to get a realistic picture of what you can borrow at current rates.
Signs of stabilisation
Several data points in early 2023 pointed to a property market that was finding its floor:
What this means for buyers
A stabilising property market shifted the landscape in favour of first home buyers in several ways.
The cash rate was near its peak. The RBA’s decision to pause rate hikes suggested borrowing costs were close to their ceiling. That reduced the risk of buying a home only to face further increases in your repayments in the months ahead.
Prices were likely near their lowest point. The return to positive monthly price growth in March 2023 indicated that home values had either bottomed or were very close to it. First home buyers no longer needed to fear significant further falls in the short term.
Rental costs were adding urgency. With rents rising sharply and vacancy rates at historic lows, many renters were finding that buying had become financially comparable to renting, even with higher interest rates. That made the case for getting into the market stronger.
Keep in mind that market conditions can shift quickly. If rates rose again or fixed-rate borrowers rolled off cheap deals in large numbers, prices could soften further. The economic outlook remained uncertain, so informed decision-making mattered more than ever. Understanding how RBA decisions affect your finances is covered in detail in our article on RBA rate cuts and borrowing power.
Things to consider
Before you act, there are several practical points worth thinking through:
Next steps
The most important thing you can do right now is get your finances in order before the competition picks up. A stabilising market does not stay quiet for long. As confidence grows, more buyers return and properties move faster.
Get your pre-approval sorted, check your borrowing capacity, and talk to a broker about your options. Being ready to act when the right property comes up is what separates buyers who secure a home from those who miss out again.
At Serres Property Finance, we work with a wide range of lenders to find you a competitive home loan that fits your situation. Get in touch and we can walk you through everything from your deposit strategy to settlement.
Common questions
Q: Does a stabilising property market mean prices will definitely keep rising?
Not necessarily. A stabilising market means the rate of decline has slowed or stopped, but further risks remain. If interest rates rise again or large numbers of fixed-rate borrowers roll onto higher variable rates, prices could soften. The stabilisation reflects current conditions, not a guaranteed upswing.
Q: Should first home buyers wait for prices to fall further before buying?
Timing the absolute market bottom is very difficult to do accurately. If your finances are in order and you find a property that suits your needs at a price you can afford, waiting for a small further fall could mean missing out entirely as demand returns. Being prepared and ready to act is more valuable than trying to pick the perfect moment.
Q: How does the RBA’s cash rate pause affect my home loan?
When the RBA pauses rate hikes, variable home loan rates typically stop rising too. That gives buyers more certainty about their future repayments. It also tends to improve consumer confidence, which brings more buyers into the market. A mortgage broker can help you assess whether a fixed or variable rate makes more sense for your situation right now.