In 2025, first-time buyer applications accounted for 46.7% of all applications received by ooba Home Loans, a meaningful rebound following the slowdown post-2020.
Even more telling: the average purchase price paid by first-time buyers increased by 4.4% in 2025, outpacing the national house price growth of 3.6%.
What This Means
- Confidence is returning: When first-time buyers step back into the market, it reflects renewed belief in financial stability. These are typically cautious buyers, they enter the market when they feel secure in their employment, confident in their income trajectory, and optimistic about long-term economic conditions.
- Household affordability is improving: With inflation easing and interest rate cuts filtering through, monthly repayments are becoming more manageable. Improved lending conditions - including higher approval rates and access to competitive rate concessions - are lowering the barrier to entry for many aspiring homeowners.
- Interest rate expectations are stabilising buyer behaviour: When buyers believe rates have peaked or are trending downward, hesitation reduces. Instead of waiting “just in case,” many choose to act, knowing they can potentially refinance later should rates soften further.
First-time buyers are often the heartbeat of a healthy property market. They represent new demand entering the system rather than simply recycling existing stock. When they return in meaningful numbers, it signals optimism about job security, affordability, and long-term stability.
And importantly, they unlock movement across the entire property chain.
When a first-time buyer purchases an entry-level home, that seller can upgrade. That upgrade seller may move into a higher price bracket. Momentum builds upward.
For Sellers, This Means:
- A broader buyer pool – More qualified entrants means more competition for well-priced properties.
- Stronger demand in entry- to mid-level price bands – Particularly relevant for sectional title, townhouses, and family starter homes.
- Increased transactional activity across the market – More movement creates healthier turnover and reduced stagnation.
- Improved negotiating conditions – Serious, finance-ready buyers create more stable transactions.
In short, first-time buyer recovery is not just good news for young professionals — it is a foundational driver of overall market recovery.
