Is now a good time to purchase a home?
Many potential homebuyers and investors are wondering if they should make their move or wait on the sidelines, given recent market volatility and the upcoming federal election.
As someone who works with buyers through all kinds of market conditions, I’ve been hearing this question a lot lately. Let me share what I’m seeing on the ground as a buyers agent on the Central Coast.
👉 Here’s my take on where the market is headed and how to make smarter moves despite all the noise.
Market Volatility and Property Investment
You’ve probably noticed the share market has been on a wild ride lately. This has many investors wondering what to do next.
In my experience, history gives us some pretty reliable clues about what might happen.
During unsettled periods like we’re seeing now, with President Trump’s tariffs and global tensions causing ripples, money tends to flow from shares into property.
Property represents something tangible.
Bricks and mortar have long been seen as a safe harbour when things get shaky. It’s the typical investing pendulum at work:
- When confidence in the global economy wobbles, funds shift from stocks to property
- During stable economic periods, investment often flows back into shares
- As market uncertainty increases, property becomes more attractive again
Right now, sentiment is swinging quite aggressively away from the share market. However, it hasn’t fully swung towards property yet, and there’s a good reason for this temporary holding pattern.
Why Property Hasn’t Taken Off Just Yet
Have you noticed how everything seems to go a bit quiet around election time? I see this pattern in every election cycle.
Buyers and sellers get nervous, sitting on their hands during the campaign period. Add in Easter and ANZAC Day, and you’ve got the perfect recipe for a temporary market lull.
But here’s what I’ve learned over the years:
Once the election wraps up in May, regardless of which party wins, we typically see a surge in property activity.
People suddenly realise nothing dramatic has changed and get back to business with their plans.
I reckon we’ll also see another rate cut at the next RBA meeting, which will pour more fuel on the fire, boosting confidence and demand for property.
All these factors point to a significant uptick in market activity after the election dust settles.
Election Promises and Housing Policies: Help or Hindrance?
I’ve got to be honest with you.
I’ve never been a huge fan of these first home buyer schemes, despite how well-intentioned they might be.
They tend to create more competition at the lower end of the market, pushing prices up rather than making housing more affordable.
Look at what’s happened on the Central Coast:
- Properties we could buy for $400,000-$500,000 a few years ago
- Now start at $700,000-$800,000
- This price growth lines up suspiciously well with the stamp duty exemption cap of $800,000 for first home buyers
The Liberals recently floated the idea of offering negative gearing to first home buyers.
Again, putting more money in purchasers’ pockets to fuel property prices, rather than addressing the real issue – a lack of supply. And that’s if these policies even make it past the election. Often, they’re watered down or dropped altogether after the votes are counted.
If we really want to fix housing affordability, we need to focus on increasing supply rather than pumping up demand. Building more homes would give buyers more options and choices.
Of course, this creates another balancing act, as continuous supply increases might slow down property value growth, which could turn investors away.
The reality is that the government is heavily dependent on everyday mum and dad investors to provide the bulk of rental housing in Australia. There simply isn’t enough public housing to meet demand.
So they’re always walking that tightrope between keeping property values stable for investors while trying to improve affordability for first home buyers.
Should You Wait or Act Now?
I’m expecting the property market will stay fairly quiet until we get through the federal election and all these public holidays.
But once that’s behind us?
I think we’ll see a real pick-up in buyer activity, especially if that rate cut I’m predicting comes through.
Finding Value in Today’s Market:
The entry-level market is going to keep feeling the pressure.
Right now on the Central Coast, you’ll pay $750,000-$800,000 for a three-bedroom, one-bathroom house, but for only $50,000-$100,000 more, you could get a four-bedroom, two-bathroom house.
That’s a huge step up in value for not much extra money. And you’ll probably face less competition in that next bracket up, too.
That doesn’t make much sense, does it?
Those government incentives are artificially pumping up the bottom end of the market.
My Advice for Buyers:
If you’ve got a bit of flexibility in your budget, it might be worth looking slightly above those first home buyer thresholds. You’ll often face less competition, and you’ll get significantly better features for not much more money. It’s worth doing the sums.
There’s always going to be noise around elections, interest rates and market movements.
In my experience, the people who get ahead are the ones who look past the headlines and focus on their own situation.
If the numbers stack up and you’re ready to buy, then now can absolutely be a good time.
Trying to time the market perfectly rarely works. What matters more is buying the right property, in the right location, with the right plan behind it.
I find myself in an interesting position these days. As a property investor, I naturally want to see values grow, but as a parent, I worry about how my kids will ever afford to buy. I’m sure many of you feel the same way, too.
Let’s Talk Strategy
Interested in buying property but not sure where to start?
Book a free consultation. I’m always happy to talk through your options and help you make a confident move, whether you’re buying your first place, upgrading or just trying to figure out what makes sense in this market.
