Property Credit report highlights 15 housing markets becoming more favourable for first home buyers

In a new report titled “The Property Pendulum – 15 Housing Markets Swinging to First Home Buyers”, Property Credit has identified a number of areas across Australia where market conditions are increasingly favouring those looking to purchase their first home.

The analysis, which covers over 300 housing markets nationwide, comes amid a challenging backdrop of rising interest rates and escalating property prices.

Property Credit CEO Giordano Stepancic said the report pinpoints key suburbs where affordability is still within reach for first home buyers, with prices under the $750,000 mark.

“Despite the headwinds of rising interest rates and escalating prices, there are tangible shifts in several markets where the balance is tipping back towards first home buyers,” Mr Stepancic said.

However, the study also found that high-demand suburbs are showing resilience against broader market trends, with prices holding firm.

“While many areas are experiencing a pendulum swing towards buyers, coveted suburbs are holding their ground. This dichotomy can offer strategic opportunities for savvy first home buyers,” Mr Stepancic said.

He emphasised the importance of timing and local knowledge when looking to enter the market, saying understanding when and where the pendulum is swinging can significantly enhance buying strategies.

“Our analysis not only identifies where the markets are shifting, but also provides insights into the dynamics behind these shifts, empowering first home buyers to make informed decisions,” Mr Stepancic said.

The report comes as many first home buyers find themselves locked out of the market due to the soaring cost of housing in recent years, particularly in major cities like Sydney and Melbourne.

Data from CoreLogic shows the median house price in Sydney reached $1.12 million in April, while in Melbourne it was $930,000.

However, there are signs the market may be starting to cool, with rising interest rates and affordability constraints putting downward pressure on prices in some areas.

The Reserve Bank of Australia has raised the official cash rate by 3.5 percentage points since May last year in a bid to curb inflation, pushing up mortgage repayments for many borrowers.

Property Credit’s report suggests there may be opportunities for first home buyers to take advantage of these changing market conditions in certain areas, provided they have the right local knowledge and timing.