Thinking about buying your first home? Here’s what you should do first

30 May 2025
Housing

Author – Denton Pugh, NAB Executive for Home Lending. Originally published on News.com.au.

Australia’s property market is picking up again. With school and public holidays, an election, and an RBA decision out of the way, we’re seeing buyers and sellers re-enter the market.

The Reserve Bank’s decision to cut interest rates again this month wasn’t a shock. With inflation now sitting comfortably inside the RBA’s 2-3% target range, most economists expected this move.

Now that some of this uncertainty has cleared, and further cuts have been announced, more buyers are back searching for their dream home.

At NAB, we’ve seen steady growth in first home buyer activity since February, with some entering the market through investment. We’ve seen a 10% increase this year in buyers purchasing an investment property as their first home – a trend known as ‘rent-vesting’.

NAB insights show this strategy is especially popular in NSW and WA, where a home buyer buys in one suburb while choosing to rent in another. This is a popular strategy for younger buyers who want to get on the property ladder without giving up the lifestyle or location they love.

Through May, new listings have started to recover. Consumer confidence, which dipped in April, is also trending up. And that matters because when people feel more confident, they’re more likely to make a big purchase on something like a home.

Lower rates and growing confidence should help carry the momentum we’re seeing through the typically quieter winter months. But we’re not expecting house prices to take off in 2025. While lower rates do give buyers a bit more borrowing power, stretched affordability and ongoing cost-of-living pressures are still holding price growth back.

So, what should potential buyers be doing now?

Start by getting clarity on your borrowing power. Speak to a banker and get pre-approval. In many instances, this can be done in under an hour.

I was talking to a first home buyer who told me how quick her home buying journey was. She spoke to her banker to understand how much she could borrow, got pre-approved in under an hour, and just six weeks later she had the keys to her new home.

With the market moving again, opportunities are there. Being ready to act can make all the difference.