Buy now or wait? Major banks expert reveals how to clear the confusion – realestate.com.au

With interest rates suspended for the foreseeable future, a Big Four bank executive has revealed how buyers can tackle the growing confusion surrounding the property market.

National Australia Bank home lending director Denton Pugh has revealed below five questions house hunters should ask themselves in the midst of today’s market to cut through the noise.

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NAB home lending director Denton Pugh.

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By Denton Pugh

As the final property listings for the year are released, many Australians are asking themselves a familiar question: “Should I buy now or wait until next year?”

With interest rates unchanged and home prices still rising, it’s easy to feel caught between the fear of missing out and the hope that things will get easier in the new year.

For those weighing their options, “getting ready to buy” is more than just making a down payment.

It’s also worth taking the time to understand what support might be available – such as expanded eligibility for the Australian Government’s 5 per cent Deposit Scheme – which could help some first home buyers take the next step more quickly.

The truth? There is no ready-made answer. But there is a way to cut through the noise: ask yourself the right questions and let your own circumstances – not just the headlines – determine your next step.

1. Are you financially ready now?

Buy now: You’ll have your deposit saved, pre-approval in hand, and a clear budget. You’ll be ready to move quickly when the right home presents itself.

Buy next year: you need more time to build up your deposit, reduce debts or get your finances in order. Waiting can help you buy with more confidence.

Buyers are facing a dilemma over when to enter the market now that rates have been suspended. Photo: Nigel Hallett

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2. Is your ideal home available?

Buy now: you’ve found a home that meets your needs: location, price, lifestyle. The quieter market in November and December could mean less competition and more bargaining power.

Buy next year: you don’t see the right properties, or you want to wait for more offers in the traditional wave of the new year.

3. How flexible are you in terms of timing and location?

Buy Now: You’re open to different suburbs or property types, and you’re willing to take action when a good opportunity presents itself, even if it’s not your “forever home.”

Buy next year: you have a specific area or property in mind and are willing to wait for the perfect fit.

4. Are you prepared for ongoing costs at current prices and rates?

Buy Now: You’ve stress-tested your budget for current repayments, plus a cushion for future changes. You feel comfortable with the commitment.

Buy next year: You want to see if rates or prices change, or you need more time to plan for the full cost of ownership.

It is expected that the ongoing challenges in the housing and construction sectors will continue to lead to an increase in real estate prices.

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5. Are you ready to take action even if the market is not perfectly predictable?

Buy Now: You’re comfortable with some uncertainty and want to secure a home before prices potentially rise further.

Buy next year: You prefer to wait for more stability or clarity in the market, even if this means you will have to deal with higher prices or more competition later.

Whether you buy now or wait until next year, it’s important to remember that no one time is right for everyone.

This year’s real estate market results show that people continue to find their own way – regardless of changing rates or rising prices.

In fact, new NAB data shows that the average age of first home buyers has remained stable at around 33 since 2020.

This tells us that even in a challenging market, Australians are still finding ways to get the keys to their homes. The “right time” is often when you are ready – not when the market is perfect.

– Denton Pugh is National Australia Bank’s director of home lending.

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