Home Loan Club News and Guides

Economic slowdown brings opportunity.

Australia’s economic landscape in mid-2025 is marked by a notable slowdown in growth, leading to moderated consumer demand and subdued investment activity. While this may seem like a challenge for the broader economy, it has created a valuable opportunity for first home buyers. With less aggressive investor competition and easing pressure on property listings, buyers who were previously priced out or overwhelmed by market intensity now find themselves in a more stable environment. As inflation comes under control, the property market has entered a more balanced phase, allowing thoughtful buyers to explore options at a more realistic pace.

Rising prices balanced by new supply.

Housing prices are still on the rise in many cities, with Brisbane, Perth, and Adelaide posting double-digit annual gains. However, increased construction activity in early 2025 is beginning to inject much-needed supply into the market. More developers are releasing stock into outer suburban corridors and regional growth hubs, helping to offset demand pressures. This fresh supply is crucial in ensuring that prices don’t skyrocket uncontrollably, while also offering more variety to buyers. For first home buyers, especially those looking for brand-new builds or house-and-land packages, this opens the door to flexible finance arrangements and modern living options.

Smaller deposits and smarter strategies

Saving for a 20% deposit remains a challenge, especially in capital cities where median home prices often exceed $900,000. Many first-time buyers are now leveraging alternative strategies to get into the market sooner. These include accepting lender’s mortgage insurance (LMI) on smaller deposits (as low as 8%), receiving family assistance or gifts, or opting into government-backed schemes. There’s also a shift toward choosing new builds, where smaller upfront costs and staged payment structures make affordability more manageable. This trend reflects a pragmatic mindset among younger buyers—prioritising ownership sooner rather than waiting for ideal financial conditions.