Key takeaways
Buying a first home is still challenging, but the latest data suggests the market isn't one simple story
First-home buyers are still entering the market, while listings, auction conditions and buyer competition have shifted in some areas
Government support and lender settings may also look different from when some buyers last checked
Before ruling yourself out, it may be worth looking beyond the headlines and checking the latest facts
It would be easy to read the housing headlines and think there's no point trying to buy your first home right now.
Interest rates remain higher than they were a year ago. Cost-of-living pressures continue to affect household budgets. Property prices are still high in many parts of Australia. For many first-home buyers, the past few years have felt like one setback after another.
So, if you've stepped away from the market or decided to wait, you're certainly not alone. But while the headlines aren't wrong to say buying is challenging, they don't always tell the whole story.
Beneath the broader market narrative, some conditions have shifted.
First-home buyers are still entering the market. Listings have increased. Auction conditions have cooled in some cities. Some price momentum has softened. Government support has also changed since many buyers last looked.
None of this means buying a first home has suddenly become easy. It does mean that relying only on headlines may not give you the full picture.
Before deciding whether to keep waiting, it may be worth looking at what the latest data is actually showing.
Headlines vs. what the data says
The headline feeling | What the latest data adds |
|---|---|
"Nobody can buy anymore." | First-home buyers are still entering the market, with more than 30,000 owner-occupier first-home buyer loan commitments recorded in the March quarter of 2026. |
"Prices are impossible everywhere." | National dwelling values were broadly flat in May 2026, with Sydney and Melbourne recording monthly declines while other cities continued to grow. |
"There's nothing to choose from." | National property listings increased 10.4% month-on-month in May, giving buyers more properties to compare in some markets. |
"Auctions are still impossible." | Auction clearance rates have eased in some cities, although conditions continue to vary by location and property type. |
"Investors are buying everything." | Investor lending remains strong year-on-year, but loan commitments declined over the March quarter. |
"A small deposit means I'm out." | Eligible buyers may be able to purchase with a minimum 5% deposit under the Australian Government's 5% Deposit Scheme. Eligibility criteria apply. |
"Everyone thinks prices will keep rising." | Consumer expectations for house price growth softened in June, according to the latest Westpac–Melbourne Institute survey. |
Sources: Australian Bureau of Statistics (Lending Indicators), Cotality Home Value Index and Property Market Indicator, SQM Research, Housing Australia, Westpac–Melbourne Institute Consumer Sentiment.
Myth 1: "No first-home buyers are getting into the market"
What the data says
One of the most common impressions from recent housing coverage is that buying a first home has become impossible. The latest lending data tells a more balanced story.
According to the Australian Bureau of Statistics, there were 30,241 owner-occupier first-home buyer loan commitments in the March quarter of 2026. While that was 4.3% lower than the previous quarter, it remained 5.0% higher than the same period a year earlier.
The value of those loan commitments also increased 17.9% year-on-year, despite falling quarter-on-quarter. This doesn't mean buying has become easy. Nor does it mean every first-home buyer will qualify for a loan.
What it does show is that first-home buyers are still entering the market, even in a higher-rate environment.
Daniel Awkar, Retail Broker at Aussie Prospect, says some first-home buyers are beginning to reassess the market rather than assuming conditions are unchanged.
"I've noticed a shift in some first-home buyers' attitudes following the announced tax changes. Some are looking again because they hope competition may ease in parts of the market," Daniel says.
While every buyer's circumstances are different, the data suggests the market hasn't come to a standstill. If you've ruled yourself out completely, it may be worth checking whether your assumptions still match what's happening today.
You might also be interested in: More homes are hitting the market. What it means for first-home buyers
Myth 2: "Prices are either crashing or still running away everywhere"
What the data says
Property prices often dominate the headlines. But national headlines don't always reflect what's happening in the suburbs where buyers are actually looking.
According to Cotality's Home Value Index, national dwelling values were broadly flat in May 2026.
Sydney recorded a 0.9% monthly decline, while Melbourne fell 0.8%. At the same time, Perth and Darwin continued to record growth, highlighting that Australia remains a multi-speed property market.
SQM Research also reported that asking prices stalled nationally during May, while several capital cities recorded monthly declines in asking prices.
For first-home buyers, the key takeaway isn't that homes have suddenly become cheap. It's that national headlines don't always reflect what's happening in individual markets.
A city-wide trend may look very different from conditions in the handful of suburbs you're actually considering.
Looking at recent sales, comparable listings and local market activity can often provide a clearer picture than relying on broad national commentary alone.
You might also be interested in: Perth is now a $1 million city. What does that mean for buyers?
Myth 3: "There's still nothing to choose from"
What the data says
Another common perception is that there simply aren't enough properties available for first-home buyers to consider. Recent listings data suggests the picture may be changing in some markets.
SQM Research reported that total residential property listings increased 10.4% month-on-month in May 2026, reaching 258,803 properties nationally.
National listings were also 0.8% higher than the same time last year, while new listings increased 12.0% year-on-year. SQM also reported that older residential listings rose 10.5% month-on-month, although they remained 10.8% below the same time last year.
More listings don't automatically make homes more affordable. But they can change the buying experience.
For first-home buyers, more available properties may mean:
more homes to compare before making a decision
more comparable sales to help assess value
more opportunities to explore different suburbs or property types
less pressure to rush into the first suitable property
More choice doesn't solve affordability overnight, but it can change the way some buyers experience the market.
You might also be interested in: Why some buyers may have more room to negotiate in today’s property market
Myth 4: "Auctions are still impossible"
What the data says
If you've been outbid at auction before, it's understandable to assume conditions haven't changed. Recent auction data suggests that, in some markets, competition may not be as intense as it was during previous peaks.
Cotality's Property Market Indicator reported a preliminary combined capital city clearance rate of 51.1% for the week ending 7 June 2026, the lowest preliminary result since April 2020.
Weekly auction results can fluctuate depending on auction volumes and seasonal factors, but lower clearance rates can indicate a greater number of passed-in properties and more opportunities for post-auction negotiation.
That doesn't mean auctions have become easy. Competition remains strong for many desirable properties. But for buyers who stepped away after repeatedly missing out, it may be worth checking whether auction conditions in their preferred suburbs still feel the same today.
Some buyers may find there's more opportunity to compare properties, negotiate after auction or stick to the budget they've set.
You might also be interested in: Are affordable suburbs back? Here’s what the data says
Myth 5: "Investors are buying everything"
What the data says
Investor competition remains an important part of Australia's housing market. But, like many other parts of the market, the picture is more nuanced than some headlines suggest.
According to the Australian Bureau of Statistics, investor loan commitments fell 5.3% quarter-on-quarter in the March quarter of 2026, while the value of investor lending declined 3.0% over the same period.
At the same time, investor lending remained significantly higher than a year earlier, with loan commitments 18.8% higher year-on-year and the value of investor lending 25.3% higher year-on-year.
This means investors haven't disappeared from the market.
The Australian Government has legislated changes to negative gearing and capital gains tax that are due to commence from 1 July 2027.
Some investors may choose to reassess future purchases as they consider what the changes could mean for their circumstances. For first-home buyers, the important takeaway is that investor competition remains relevant, but it isn't necessarily the same as it was 12 months ago.
Understanding conditions in your own target market is likely to be more useful than relying on broad assumptions.
You might also be interested in: Could ACT’s stamp duty abolition bring more first-home buyers into the market?
Myth 6: "If you don't have a 20% deposit, you're out"
What the data says
Many first-home buyers assume they need a 20% deposit before they can seriously begin looking for a home. Depending on your circumstances, that isn't always the case.
Under the Australian Government's 5% Deposit Scheme, eligible first-home buyers may be able to purchase a home with a minimum 5% deposit and no Lenders Mortgage Insurance (LMI). Eligible single parents and legal guardians may be able to buy with a minimum 2% deposit.
Since 1 October 2025, the scheme has also removed income caps and waitlists for eligible buyers. Property price caps, lender requirements, and other eligibility criteria continue to apply.
Daniel Awkar says deposit requirements are one of the biggest misconceptions he hears from first-home buyers.
"A lot of customers believe they need a 20% deposit plus fees before they can even start looking," Daniel says. "Depending on their circumstances, that isn't always the case."
The point isn't that every buyer will qualify under the scheme. Rather, it's that if you ruled yourself out because you assumed you needed a much larger deposit, it may be worth checking today's eligibility criteria before making that decision.
Eligibility criteria, property price caps, participating lender requirements, and lending criteria apply. Buyers remain responsible for repayments and other purchasing costs.
You might also be interested in: First-home buyer reality check – What's changed in 12 months?
Myth 7: "Higher rates mean there's no point checking"
What the data says
There's no avoiding the fact that interest rates remain higher than they were a year ago.
The Reserve Bank of Australia (RBA) increased the cash rate three times during 2026, lifting it to 4.35% by May.
The Australian Prudential Regulation Authority (APRA) has retained the mortgage serviceability buffer at 3 percentage points, meaning lenders continue to assess most home loan applications using an interest rate that is 3 percentage points above the loan rate.
The RBA held the cash rate at 4.35% at its June 2026 meeting. While a rate hold doesn't remove affordability pressures, it provides first-home buyers with a timely opportunity to revisit their borrowing position, repayment assumptions and target price range using current information.
Higher interest rates can reduce borrowing capacity, so this isn't a story about borrowing becoming easier.
But interest rates are only one part of the picture. Listings, competition, government support, property prices, and even your own financial circumstances may all have changed since you last assessed your options.
The latest RBA decision doesn't necessarily tell you whether you should buy. It simply provides another opportunity to check whether today's numbers still support the decision you made months ago.
A change or hold in the RBA cash rate does not automatically mean your borrowing capacity or repayments will change. Lender policies and individual circumstances apply.
You might also be interested in: Could fewer investors mean less competition for home buyers?
Myth 8: "Waiting is always safer"
What the data says
For many first-home buyers, waiting feels like the safest option. Sometimes it is. But there's a difference between waiting because you've made an informed decision and waiting because the headlines make the market feel impossible.
The latest Westpac–Melbourne Institute Consumer Sentiment Index shows Australians remain cautious about the economy, with overall consumer sentiment remaining well below its long-run average.
At the same time, expectations for future house price growth softened noticeably in June, with fewer consumers expecting prices to rise over the next year.
Low confidence doesn't necessarily mean buying is the wrong decision. It simply means many Australians remain cautious. For some buyers, waiting may still be the right choice.
The important thing is making that decision using current information rather than relying solely on the mood of the market.
Lou Cornelio, Finance Broker at Aussie, says he's started seeing some first-home buyers reconsider their decision to wait as they keep a closer eye on changing market conditions.
"I've noticed a shift in some first-home buyers' attitudes. They're watching how the market is changing and looking again to see whether conditions have become more favourable than they expected," Lou says.
"I've also seen first-home buyers succeed over the past month after a long period of frustration, which has been encouraging to see."
Passive waiting might look like:
assuming nothing has changed
relying only on headlines
delaying without reviewing your borrowing position
assuming your deposit or eligibility hasn't changed
By contrast, informed waiting means:
understanding your borrowing position
tracking suburbs you're interested in
monitoring listings and recent sales
checking whether you're eligible for government support
being ready if the right property comes along
The difference isn't whether you wait. It's whether you're waiting based on facts or assumptions.
You might also be interested in: First-home buyer grants and concessions in Australia – What support is available in 2026?
So, what should first-home buyers take from this?
The headlines are right about one thing. Buying a first home is still challenging. Interest rates remain higher than they were a year ago. Affordability pressures continue, and competition hasn't disappeared.
But the headlines may not be telling the whole story. First-home buyers are still entering the market. Listings have increased in some areas. Auction conditions have cooled in parts of the country. Some price momentum has softened. Government support may also look different from the last time you checked.
None of that means every buyer should act now. Waiting may still be the right decision for some buyers. But it should ideally be a decision based on current information rather than assumptions carried over from months ago.
Before ruling yourself out completely, it may be worth checking where you stand using current information.
An Aussie Broker can help you understand your borrowing position, repayment comfort zone, deposit, scheme eligibility and lender options using today's numbers, so you can make an informed decision based on your own circumstances.
