Momentum is returning to the market.
After several months of hesitation, Australia's property and lending markets are beginning to show signs of renewed activity as borrowers regain confidence and move forward with decisions they had previously put on hold.
"It's picked up for sure," Claire Viskovich, founder, director and mortgage broker at Perth-based Beez Neez Finance, told Australian Broker. "It was pretty quiet for a few weeks. And apparently most brokers were quiet as well. But I've just started getting busier again. And a few real estate agents have mentioned that more first-time homebuyers are now looking, because the market is slowing down. Investors were getting those homes before and now it's opened up more opportunities for first-time homebuyers to get in."
In Brisbane, Luke Ashby, a finance and mortgage broker at Emerge Finance, has had a similar experience. He said inquiries were down about 40% in May, year-over-year, but have slowly started to trend back up at the end of June and early July.
"There was obviously a lot of doom and gloom in the headlines," Ashby explained. "The budget combined with the rate rises recently, it just took a lot of the confidence out of the market. But now I'm seeing clients coming through; inquiries are picking up. It's a lot of first-time homebuyers coming out of the woodwork. Clients I talked to months ago who are now ready, wanting to move forward and see this time as a great opportunity given that there's less investors out there in the market. They're all serious; they all get pre-approved straight away and they're finding properties very quickly."
The period directly following the release of the 2026 to 2027 federal budget this past May created a sense of caution among borrowers and investors alike. While interest in entering the market remained, uncertainty surrounding potential policy changes encouraged many borrowers to adopt a wait-and-see approach rather than commit to big financial decisions.
For mortgage brokers, that caution translated into longer decision-making timeframes and fewer immediate transactions. Many clients continued making inquiries, reviewing their borrowing capacity and discussing their options. But few decided to make the leap. Now that the budget has been finalised, however, many borrowers appear more comfortable moving ahead with their plans.
"I think there was a lot of confusion around the negative gearing and the tax [changes]. A lot of clients were confused. Even myself. It took a while to work out exactly what the situation was with the negative gearing," Viskovich explained. "But now that the federal budget has passed, we know what's happening, we know what's going to happen in the next year.
"The momentum will definitely continue," she added.
The changes limit negative gearing benefits to newly built homes, preventing investors from purchasing existing properties to rent out. The policy was designed to help aspiring homeowners gain a foothold in the market. But rather than discouraging investment, it has accelerated a shift in where and how investors are deploying capital.
"I've seen a couple of investors starting to come back out now that they've had a chat with their accountants and are working out the best way to move forward," Ashby said. "Now that the dust has settled, people still want to invest; they still want to do stuff and put their money somewhere. They're just playing the cards they were dealt and trying to get in while there's still a window. Because they don't know how long that window will last because we've still got a supply issue."
At the same time, changing conditions across parts of the housing market are also helping to restore confidence. Property prices have begun easing in some Australian cities, creating opportunities for buyers who previously found themselves priced out of the market, or who were reluctant to compete during periods of rapid price growth.
For first-time homebuyers in particular, this combination of greater certainty and moderating prices may present a more favourable environment than existed earlier in the year.
"They're able to take their time, negotiate on property and not feel rushed and get a good deal," Ashby explained. "Borrowers are getting a bit more savvy, realizing that it's now an opportunity to get a good deal."
