- Australians are delaying property purchases, with many waiting for prices to fall further or for interest rates to stabilise.
- Changing market conditions are creating opportunities for buyers who are adjusting their strategies with lower offers and exploring new suburbs.
- Westpac mortgage application volumes are showing signs of recovery1.
New Westpac research has found millions of Australians are delaying major property decisions as affordability, house prices and interest rates fuel concerns in the housing market.
Findings from the latest Westpac Home Ownership Report have found two in five (41%) think now is a bad time to buy a first home and almost half (47%) think now is a bad time to sell a property. Further, three quarters (75%) are holding off on buying a property until prices fall more and 73 per cent are delaying a purchase until interest rates stabilise.
Despite these concerns, four in five (79%) first home buyers feel more motivated to buy a property now compared to 12 months ago and more than half (55%) intend to make a housing change in the next year. This includes plans to renovate their home (19%), buy a first or new home to live in (15%), buy an investment property (8%) or sell a home (6%).
Housing affordability remains the biggest factor influencing property decisions (40%), followed by interest rate uncertainty (32%) and falling property prices (30%).
Westpac Chief Executive, Consumer, Carolyn McCann, says Australians aren't abandoning their property ambitions altogether, but feel conflicted about the uncertainty in the current market.
"We're not seeing a mood of crisis, rather a mood of concern. The market has paused as people try to make sense of conflicting signals around interest rates, house prices, cost-of-living pressures and the broader economy," McCann said.
"While we've seen a downturn in mortgage applications of around five per cent since May, activity is beginning to recover with applications up 15 per cent from the July low1.
"People still want to buy and sell property, but many are seeking greater certainty before making a move. The challenge is that waiting for the perfect moment can mean missing opportunities that are right in front of you."
The hesitation is also being fuelled by ongoing supply constraints, with 31 per cent of Australians saying there either aren't enough properties available, or those that are on the market don't meet their needs.
However, the findings suggest that while confidence has softened, Australians remain committed to their long-term property goals. Confidence in property as a long-term investment remains strong, with four in five (81%) Australians agreeing that owning a property remains the best way to build wealth.
Buyers are also actively adjusting their strategies in response to changing market conditions, identifying an opportunity to make lower offers (19%), revise their deposit target (17%) or consider suburbs previously outside their budget (16%).
"Market conditions will continue to change, but for many Australians the dream of owning a home remains as strong as ever - an aspiration that's underpinned by a belief that property remains one of the best ways to build long-term wealth," McCann said.
"But many buyers are worried about getting the timing wrong and are therefore weighing up whether prices could fall further, whether interest rates might move again and whether waiting could leave them in a better position.
"While recent falls in house prices will be welcomed by first home buyers looking to enter the market, we also know that housing affordability and availability remains a major long-term challenge for many.
"The reality is that property decisions are rarely driven by just one factor. Buyers who are financially prepared and have found a property that meets their needs should focus on their long-term goals rather than dwell on predicting every market movement."
About the research
The research was commissioned by Westpac and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 1,165 Australians aged 18+ between 18-28 September 2026, with results weighted to Australian Bureau of Statistics population estimates.
