Q. What kind of demand are you seeing from South Australian borrowers?

Rate cuts fuelling optimism

I AM definitely seeing an influx of first home buyer inquiries, as there is a lot of positive sentiment coming from the government and the RBA through rate drops and further incentives and initiatives for first home buyers.

Previously, when we were seeing regular negative sentiment with interest rates increasing, first home buyers were often fearful to take the leap into home ownership due to perceived higher repayment costs. Clients are seeing this as an opportunity to get into the market now before further rate decreases come through, which home buyers are seeing as a driver behind increased competition and decreased housing affordability.

It is also making lower deposit options more desirable, as these products can often yield higher interest rates. As rates come down, these products become more desirable as their rates become less intimidating.

Confidence rises, but deposit hurdles remain

ACTIVITY AMONG first home buyers since June has been very strong, with a lot of buyers making the decision to move now before the market increases any further. It gives confidence to buyers that if they can afford the pre-approved loan at the current rate, it might get easier over time instead of harder.

We’ve had increases across the board over the last three years, so it’s nice to look forward to some of those pressures easing.

But buyers are dealing with the double whammy of affordability and deposit amount constraints. For Adelaide’s $865,000 median house price, a 20 per cent deposit plus fees is $230,000. This means that if consumers saved $1,000 a week, it would take them 4.4 years to have enough for a house deposit.

Buyers are seeking ways to leapfrog the savings required, but also balance that with the borrowing power to support larger loans.

Rental surges driving more buyer interest

WE’RE SEEING a clear lift in demand from South Australian borrowers, particularly first home buyers. Rising rents are a major driver. Adelaide house rents are up more than 5 per cent year on year, and many clients tell us they’d rather pay slightly more to own than continue renting.

With interest rates easing, purchasing power feels stronger, and confidence is returning. We’re finding that dual-income households, who had been sitting on the sidelines, are now engaging seriously with brokers and making the jump into ownership before conditions shift again.

Spring brings fresh opportunity for first home buyers

AS A finance broker helping hundreds of South Australians each year, I’m excited to see a strong rise in first home buyer activity across our state.

Lower interest rates are improving affordability, making home ownership more achievable for many. Buyers are now able to borrow more, opening up opportunities that may have felt out of reach just months ago.

With spring now here, traditionally the busiest time in real estate, we are seeing more properties hit the market. This increase in listings gives buyers greater choice and drives fresh momentum in the market.

For people thinking about buying a first home, now is the time to act. With the right guidance and support, the process can be smoother than they think. This spring could be their season to turn the dream of owning a home into a reality.