Favourable conditions lift first home buyer activity

First home buyers have strengthened their position in the property market, capturing a record share of purchases in the September 2025 quarter, according to Cotality. First home buyers made 27.7% of all transactions nationwide, surpassing the previous high of 26.9% recorded in December 2024.

This momentum is being seen not only at a national level but also across the main centres, urban areas and provincial markets, where first home buyer activity has exceeded long-term averages in recent months.

Why first home buyers are gaining ground

Cotality Chief Property Economist Kelvin Davidson said favourable conditions were helping more aspiring buyers enter the market. “In an environment where house prices and mortgage rates have both fallen, and resulted in better affordability, first home buyers continue to fare well,” he said.

He noted that lending settings had also been supportive. “Overall, banks and borrowers are already operating below the current, lower loan-to-value ratio speed limits, but first home buyers are certainly making the most of the low-deposit finance that’s on offer.”

Despite these tailwinds, it is still taking longer for many first home buyers to purchase their first property. Before the pandemic, the average age of purchase was 34; now, it’s 36. Mr Davidson said this was because some buyers were choosing to travel, build careers or start families first, while others felt less pressure to buy due to weak price growth. “But for others, the rise in average age will no doubt reflect affordability strains and a necessity to enter the market later,” he said.

What first home buyers are paying

So far in 2025, the median price paid by first home buyers has been $700,000, up from $695,000 last year. This sits below the overall median of $770,000 but well above the lower quartile of $585,000.

Mr Davidson said this pattern showed that many first home buyers were not targeting the cheapest homes. “The typical first home buyer doesn’t always enter at the bottom of the market and work their way up; many enter the market well above the bottom rung of the ladder.”

Cotality’s data supports this. First home buyer market share has increased across all value tiers: from 26% to 35% in the bottom 30% of the market since 2015, with similar gains in both the middle 40% and top 30%.

Thinking of buying your first home in 2026?

If you’re planning to purchase next year, start getting prepared now. Build your deposit steadily, reduce short-term debts and keep your credit record clean.

It also pays to understand your borrowing power early so you can act quickly when the right home appears.

As your mortgage adviser, I can help you map out a clear path to ownership and guide you through the process of comparing loan options based on your budget and goals.