Experts project competition between first home buyers and investors for entry-level properties to be a characteristic of the current market year. A potential increase in interest rates may impact the ability of some first home buyers to participate in property acquisition.
Tim Lawless, executive research director at Cotality, stated that property price growth has counteracted the benefits of three interest rate reductions initiated in 2025. Lawless further noted that housing values have risen by approximately $68,000 since the first rate cut in February of the previous year, while borrowing capacity has increased by approximately $55,000 within the same timeframe.