Signs of a Thaw in the Housing Market

BY JULIUS CAPILITAN , C21 FINANCIAL

In our last update, we spoke about the relief from falling interest rates and how the Official Cash Rate (OCR) was cut to 3%. This month, we’re beginning to see how those changes are flowing through to households and the housing market. It’s not a sudden turnaround, but there are early signs that the toughest period may be behind us.

The Economy: Tough But Improving

The economy is still carrying the weight of the past two years. Households have felt the pinch from higher living costs, slower job growth, and limited wage gains. This has kept consumer confidence muted and left many people hesitant to make big financial decisions.

But the path ahead looks brighter. Inflation pressures are easing, and the Reserve Bank has shifted from tightening to supporting growth. More policy support is expected before the end of the year. This means we could see the economy pick up gradually, easing some of the pressure households have been feeling.

Housing: A Buyer’s Market

House prices have steadied after years of decline. In many regions, values have even ticked slightly higher compared to last year. That’s a strong signal the market has found its floor.

The bigger story is supply. There are more homes on the market now than we’ve seen in a decade, giving buyers plenty of choice. Sales activity, however, remains subdued. Many buyers and sellers are in “wait and see” mode, watching the economy and market closely before making a move.

For buyers willing to act, this creates a rare moment of opportunity: stabilised prices, high inventory, and fewer competing bidders. In short, it’s a buyer’s market - for now.

Confidence Will Unlock The Market

So why isn’t activity stronger?

The missing piece is confidence. Buyers want reassurance the economy is on firmer ground, and sellers want certainty they aren’t selling at the bottom. Confidence takes time to rebuild, but it can also return quickly once people start seeing positive signs stack up.

Julius says: “Right now, buyers hold more of the cards. There’s more choice, less competition, and the chance to secure a home at a fair price. Once confidence returns, those advantages won’t last. The best results often go to those who act early, with the right strategy in place.”

Looking Ahead

Spring traditionally brings more life to the housing market, with longer days and a lift in buyer interest. Combine that seasonal trend with falling rates and easing inflation, and conditions are slowly tilting in buyers’ favour.

Julius says: “The market won’t roar back overnight, but we’re starting to see green shoots. With the right advice, you can take advantage of today’s unique conditions and set yourself up well for the years ahead.”

For homeowners, stability is welcome after a period of sharp price declines. For prospective buyers, the opportunity is clear: the stars are aligning in a way we haven’t seen for years. Acting with informed confidence now could be your decision of the century.