It’s the age old question, and in 2025 the answer is as layered as ever.
The Australian property market is currently being shaped by a potent mix of factors:
- interest rates
- housing supply
- shifting buyer demand, and
- the ever-present challenge of affordability.
Interest rates have been holding steady since late 2023 and we’ve had a few rate drops this year, but the big four banks are split on when the Reserve Bank of Australia (RBA) will make its next move.
As rates drop, borrowing becomes easier and tends to push property prices higher as buyers’ budgets increase and competition intensifies.
This is already being seen in some markets where renewed buyer confidence is creating more activity.
However, the pace of price growth has slowed since the start of the year, and in some capital cities, such as Melbourne and Canberra, prices have even dipped, offering buyers a rare window of opportunity.
There’s also more choice on the market than we’ve seen in years, especially in Sydney and Melbourne, with more listings leading to less competition and more negotiating power for buyers.
The frantic pace of the pandemic years has eased, giving buyers a chance to breathe.
Due to some investors exiting the market, early 2025 experienced declining prices, opening up more affordable stock for first-time buyers.
However, the story isn’t the same everywhere. Perth and many regional markets are still seeing strong growth, fuelled by population increases, undersupply and relative affordability compared to the major capitals.
Affordability remains a significant challenge in high demand areas and government incentives are being closely watched as a potential lever for change.
Ultimately, experts agree that the ‘right time’ to buy depends heavily on your personal circumstances:
- job security
- deposit size
- borrowing power, and
- long term plans.
The best time to buy is usually when you’re financially ready and have found the right property rather than trying to time the market based on headlines or predictions.
If you’re hoping for prices to drop further, keep an eye on interest rate movements and local trends.
Some cities may see further softening, while others could rebound quickly as rates fall and demand returns.
In short, the best time to buy is when your finances and lifestyle are aligned.
If you’re ready to make a move, now could be your moment. Just make sure you’ve done your homework and are buying for the right reasons, not just because everyone else is asking the same question!