If you’re considering your home buying plans, now might be the perfect time to act. As the property market heats up and forecasts point to further gains, moving ahead with your purchase could give you a strategic advantage. In this article we’ll explore how rising house prices, tight supply, and shifting borrowing power are all shaping the outlook and why advancing your home buying plans this summer could make a real difference.
How Current Market Trends Are Shaping Your Home Buying Plans
The Australian housing market is showing strong momentum heading into summer, with home values climbing at their fastest pace in over two years. This surge reinforces why many are rethinking their home buying plans and deciding to move sooner rather than later.
Recent data show that nationally, home prices increased by around 6.1% over the past 12 months. The rise is driven by several key forces:
- Lower interest rates, which have stimulated buyer demand and increased the number of qualified purchasers.
- A tight rental market, prompting more investor activity—investors now account for their highest share of lending since 2017.
- The introduction of the expanded 5% deposit scheme for first-home buyers, adding more buyer demand into the market.
- And, importantly, very limited supply. New home completions are running around 15.6% below the decade average — a shortfall that means demand is outpacing supply and likely will continue doing so.
With these conditions in place, the potential for further price rises is strong. A survey by API Magazine revealed that approximately nine out of ten respondents (88%) believe home prices will keep climbing. Industry analysts such as PropTrack expect continuing gains into spring and summer, while Commonwealth Bank has stated: “we still expect further gains” this year.
Given this backdrop, now is a time when many are revising their home buying plans, recognising the value of acting ahead of further price growth.
Why You Should Reevaluate Your Home Buying Plans Right Now
Borrowing Power Is Under Pressure
One key reason to reconsider your home buying timeline is the erosion of borrowing power. While the Reserve Bank of Australia’s interest rate cuts have improved borrowing potential for many households, median home values in major cities have already increased by around A$54,000 since February. In contrast, the median‐income household saw an increase in borrowing power of about A$51,000. In essence: home prices are rising faster than borrowing power can catch up, meaning waiting could reduce what you can afford.
Supply Constraints Add Urgency
When supply is limited and new completions are significantly below the long-term average, competition for available homes intensifies. That makes it more challenging to find the right property at the right price. Revisiting your home buying plans now can give you more time to act when a suitable opportunity arises — rather than scrambling later into a hotter market.
Rising Prices = Less Flexibility
Holding off on your home buying plan means you may be entering the market at a higher price. Every percentage tick in price growth reduces how far your deposit goes and may increase monthly repayments. By advancing your plan, you potentially lock in a purchase before the next wave of price increases pushes affordability further away.
How to Adjust Your Home Buying Plans Effectively
Step 1: Get Your Finances in Order
Reach out to a trusted home-finance advisor and assess whether you are truly ready to proceed. This means checking your credit, confirming deposit savings, and assessing ongoing repayment capacity. The sooner you understand whether you’re home-loan-ready, the faster you can act when the right property appears.
Contact us today to find out if your home buying plans are set up for success — don’t wait until the market moves further.
Step 2: Clarify Your Property Criteria
With momentum in the market, being clear about what you want (location, size, features, budget) gives you an advantage. Having your criteria ready means you can move quickly when a property matching your plan becomes available.
Step 3: Monitor Market Activity
Keep an eye on auction clearance rates, days-on-market statistics, and how quickly new listings are being snapped up. If the market is accelerating, it may indicate you should shorten the timeline of your home-buying plans.
Step 4: Evaluate Risk vs. Reward
Every decision has upsides and risks. Advancing your home buying plan means you may secure a property at a lower price, but you must be comfortable with the commitment before jumping in. On the other hand, waiting could cost you more in purchase price and reduce your borrowing power. Use your advisor to run scenarios: What happens if prices go up 5%? What happens if rates rise?
What This All Means for Your Home Buying Plans
If we take the data and trends at face value, advancing your home-buying plans could make strategic sense right now. Consider this:
- Home prices growth is robust; the national rise of 6.1% over the past year isn’t trivial, and the momentum may continue.
- Demand dynamics are strong: investor lending is up, first-home buyer participation is boosted, and rentals remain tight.
- Supply remains weak: new completions are low and inventory is limited — all combining to push prices upward.
- Borrowing power is being eaten away by price rises, meaning the window of opportunity may be narrowing.
In effect, by acting now, you may be able to secure your place in the market under more favourable terms than if you wait and face a higher-priced, more competitive marketplace.
Don’t let rising prices and tighter supply derail your home buying plans. Reach out to us now, and we can help you evaluate your readiness, clarify your strategy and act when the right property comes along.
Time to Accelerate Your Home Buying Plans?
In summary, your home buying plans are under pressure — from rising prices, limited supply, and increased investor activity. But they’re also positioned for opportunity. By preparing today, you could be ahead of the curve while others are still deciding.
If you’ve been postponing your home purchase, now is the moment to revisit your strategy. The market signals are clear: the next 12 months could be more challenging for affordability. By accelerating your home buying plans, you’re taking proactive control.
Ready to turn your home buying plans into action? Contact us today, and together we’ll chart a path forward — because when the market moves fast, so should you.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
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