A sense of disappointment when the Reserve Bank chose to leave interest rates unchanged earlier this month has actually had little impact on homebuyers, new figures suggest.
In an opinion piece released this week, NAB Executive for Home Lending Denton Pugh remarked that many house hunters would have been hoping for a cut, but despite the disappointment, momentum has continued through the winter months, which are traditionally quieter.
“Twelve months ago, many buyers were holding back due to higher rates”, Pugh said.
“Fast-forward to today: with two rate cuts behind us, and NAB expecting another two this year, many home buyers, especially first-home buyers, see this as a window of opportunity before the market heats up further.
“We’re not seeing a buying frenzy, but things are definitely busier this year. In fact, the average number of bidders at auctions nationwide has reached its highest level in 18 months. Momentum is building well ahead of the traditional spring peak.”
Pugh believes government support is also playing a key role.
“The Home Guarantee Scheme continues to help thousands of Australians get into their first home with lower deposits – the scheme is expected to be expanded in 2026”, he said, adding that in recent months, both Queensland and Western Australia have made changes to their assistance offered.
In Queensland, eligible first-home buyers purchasing or building a new home no longer pay stamp duty, regardless of the property price. The state’s 2025 budget also announced a ‘Boost to Buy’ shared equity scheme to help buyers with lower deposits into the market.
WA has made changes to its stamp duty concessions too, significantly reducing the upfront costs for first-home buyers.
“I’m always hearing stories where after talking to a home lending expert, a customer realises they can break into the property market sooner than expected”. Pugh said. “If you’re in that camp, thinking about buying but not sure where to start, it’s worth having that conversation.”
Where are Australians buying? Pugh notes that, when looking at NAB home lending data from metro suburbs specifically, the most popular areas are in the cities’ outer rings.
“Affordability is the obvious driver, especially for first-home buyers”, he added.
“Many are looking further out where their money buys more, and they don’t have to compromise on space and lifestyle. Many of these suburbs are now better connected thanks to major infrastructure investments, with just a short commute to the CBD”, Pugh concluded.