September 2024 - 3 Reasons Why First Home Buyers Should Act Now

If you're a first home buyer thinking about stepping onto the property ladder, there's no better time than now to make your move. With the current market conditions in your favour, acting promptly could help you secure a great deal and avoid future challenges. Here's three reasons why you should take action now.

1. Interest Rates Are Still Relatively Low

One of the most significant factors making this a good time to buy is the current interest rates. Although rates have risen compared to their historic lows during the pandemic, they remain relatively affordable by long-term standards. Low interest rates mean lower monthly mortgage repayments, making homeownership more financially feasible for many first-time buyers.
Securing a mortgage at a lower interest rate can save you thousands of dollars over the life of the loan. It also gives you more wiggle room with your budget, allowing you to consider properties that might otherwise have been out of reach. As economic conditions evolve, there is a possibility that interest rates could rise further, increasing borrowing costs. Acting now could lock in more favourable terms, safeguarding against potential future increases.

2. House Prices Are Stabilising

Recent years have seen significant fluctuations in house prices, with rapid increases driven by high demand and limited supply. However, current data suggests that house prices are stabilising. This stabilisation offers a window of opportunity for first-timet home buyers, as it reduces the risk of prices skyrocketing again in the near future.
With house prices becoming more predictable, first home buyers can plan their purchases with more confidence, knowing that they are less likely to face sudden price hikes. This stability makes it easier to find a property that fits your budget without worrying about being outbid or needing to stretch your finances.

3. More Options on the Market

The property market currently features a wider selection of homes for sale than it has in recent years. The increase in available properties means first home buyers have more options to choose from, whether you're looking for a cosy apartment, a family-sized house, or a townhouse.
More inventory on the market reduces competition among buyers, making it easier to find a home that meets your needs and preferences. It also increases the likelihood of negotiating a better deal, as sellers may be more willing to negotiate on price and terms in a less competitive environment. With more choices, you can take the time to find the perfect property without the pressure of rushing into a purchase.

Tips for First Home Buyers

1. Get a Mortgage Pre-Approval: Before you start house hunting, get pre-approved. This will give you a clear understanding of your budget and make you a more attractive buyer to sellers.
2. Do Your Research: Spend time researching different neighbourhoods and property types to find the best fit for your lifestyle and goals.
3. Work with a Professional: Use a reputable estate agent who can guide you through the buying process, provide market insights, and help you negotiate the best deal.
4. Be Ready to Act Quickly: While the market is favourable now, conditions can change quickly. If you find a property that ticks all your boxes, be prepared to act quickly to secure it.
   With low interest rates, stabilising house prices, and a wide range of options on the market, now is an excellent time for first-time buyers to enter the property market. Acting sooner rather than later could help you secure a home on favourable terms, setting you up for long-term financial stability and peace of mind. At SM Property, we’re here to support you every step of the way. Contact us today to discuss your home buying plans and take the first step towards owning your own home.