Will 2025 be a good year to buy my first home?

As a first-time home buyer, you might be wondering whether now is a good time to buy a house, given the current housing market.

Picking the right time to buy your first home can be challenging. But rather than trying to time the market to find the most opportune moment to pull the trigger, we’ve pulled together some key factors to consider when trying to decide when to buy.

How long does it take to buy a house in Australia?

Based on Domain’s recent First-Home Buyer Report, it takes an Australian couple aged 25-35 an average of four years and nine months to save a 20% deposit for an entry-priced house. As for entry-level units, it takes that same couple an average of three years and five months to save enough for a 20% deposit.

Despite 13 interest rate increases since May 2022, taking the rate from 0.1% to 4.35%, the property market has remained strong. Data from property settlement platform PEXA showed that 28.5% of all residential property sales in 2023 were paid for in cash. This was up from 25.6% in 2022.

This growing group of cash buyers is mainly made up of older, retired Australians. According to PEXA data, this group of buyers tends to have a lower household income. However, they’re able to draw on accumulated property, savings and superannuation to fund their purchases.

As a first-time home buyer, the thought of competing with a group of cashed-up buyers can be discouraging, but it shouldn’t put you off buying your first home.  

Should I buy a house now?

Although the housing market certainly plays an essential role in determining the best time to buy a property, it’s just as important to consider your own personal financial circumstances. So, if you’re trying to decide whether to buy now or wait it out, here are a few key factors worth thinking about.

Personal finances

Regardless of whether the property market is looking like a good time to buy, you’ll need to have your personal finances in check to be able to afford a property. Make sure you can provide proof of a stable income, a good credit score and enough savings to cover a deposit and the other upfront costs that come with buying a home.

At the end of the day, buying your first home should align with your financial readiness.

Government incentives

As a first-time home buyer, there are several different government concessions and schemes that you might be able to take advantage of. These programs are specifically designed to help first-home buyers get into the property market sooner, so they’re well worth a look.

Check out our blogs on the Home Guarantee Scheme (HGS) and the First Home Owner Grant (FHOG) to learn more.

Financial goals

While it’s important to consider your financial readiness, it’s also important to reflect on your goals before buying a property. Real estate is typically a long-term investment, so be sure to think about how long you intend to stay in the property and make sure your plans align with your goals.

Market cycle

The property market typically cycles through several key phases: boom, downturn, stabilisation and upturn. Depending on where the market is during its cycle, property prices will be more favourable for buyers.

When there are more homes for sale than buyers, prices tend to be lower, giving buyers more negotiating power. Alternatively, when there are more buyers than homes for sale, prices tend to be higher, and sellers typically have the advantage.

Seasonal trends

The property market can also be impacted by seasonal trends. Spring and summer tend to see more listings and increased competition, which can increase property prices. However, the higher inventory can also provide more choices. That said, the end-of-year period over Christmas and New Year can bring less competition and more favourable property prices as people are more focused on the holidays.

Autumn and winter generally have fewer listings and potentially less competition, which can be advantageous for buyers looking for better deals. As a potential buyer, you’ll need to keep your eyes on the market and familiarise yourself with property prices to understand when certain properties represent better value for money.

It’s difficult to say with certainty whether or not 2025 will be a good year to buy your first home. Instead, you’ll need to consider your own personal finances along with the property market, economic conditions and interest rates at the time. Everyone’s circumstances are different, so it’ll be up to you to decide when’s the best time to buy your first home.

At Unloan, we’ve created a new type of home loan that’s simple to understand and easier to live with. Check out our range of great loan features or learn more about whether Unloan is the right fit for you.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking independent taxation and financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia.

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