Falling house prices create prime opening for first homebuyers despite rate rise risks

To rent or buy – that is the question. Picture: iStock With investors being pushed out of the market, rents rising and property prices falling across most of the capitals, now could finally be an ideal time for renters with savings to buy their first home. But while property experts are calling a buyer’s market, rising interest rates and the threat of negative equity looms large for many would-be buyers – especially when factoring in the added extra costs of homeownership. So, how do you know which path to take? Have falling property prices brought your dream of home ownership into better view? ECONOMIC OUTLOOK According to Ray White chief economist Nerida Conisbee, at the time of writing, Sydney and Melbourne were both experiencing year-on-year declines in property values while many other markets were experiencing month on month declines. “The market is definitely weaker,” she said. MORE: Aus’ home prices fall 6 times, more to come ‘Too expensive’: Gen Z, Millennials shun local property dream With many investors traditionally purchasing at a similar price point to first homebuyers, a slowdown in activity meant the affordable end of the market could see much weaker price growth tha...