41% of Australians say it's a bad time to buy, Westpac research finds

Two in five Australians, or 41 per cent, believe now is a "bad time" to buy a property, according to Westpac's latest Home Ownership Report.

Sellers are just as reluctant. Some 47 per cent of owners said it is a "bad time" to sell, leaving both sides of the market at a standstill and weighing on transaction volumes and new listings.

The report found 75 per cent of respondents have been holding off on buying until prices fall further, while 73 per cent said they were delaying a purchase until interest rates stabilise.

Westpac chief executive, consumer, Carolyn McCann, said Australians were not abandoning their property goals but were conflicted by market uncertainty.

"We're not seeing a mood of crisis, rather a mood of concern," McCann said. "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."

What is driving the hesitation

Housing affordability was the biggest factor influencing property decisions at 40 per cent, followed by interest rate uncertainty at 32 per cent and falling property prices at 30 per cent.

Cotality data showed national dwelling values fell 3.1 per cent over the three months to August, with upper-quartile house values in Sydney and Melbourne driving the bulk of the downturn.

Last month's fourth rate hike of the year added further pressure on mortgage holders and buyers, lifting repayments and cutting borrowing capacity. The move took the cash rate to a 15-year high — the highest setting since October 2011, and well beyond the hikes seen in 2022–2023.

Modelling showed cumulative increases since February reduced a median-income household's borrowing capacity by an estimated $90,000.

ANZ and Westpac have forecast a fifth rate hike of 0.25 percentage points at the next board meeting on 3 November 2026, which would take the cash rate to 4.85 per cent.

Supply is also feeding the hesitation, with 31 per cent of Australians saying there were not enough properties available or that those on the market don't meet their needs.

McCann said many Australians still want to buy and sell, but are waiting for greater certainty before moving.

"The challenge is that waiting for the perfect moment can mean missing opportunities that are right in front of you."

Intentions haven't gone away

Despite the concerns, 81 per cent of Australians cited property as the best way to build wealth.

Four in five first home buyers said they feel more motivated to buy now than they did 12 months ago, and 55 per cent intended to make a housing change in the next year.

Of those, 19 per cent planned to renovate, 15 per cent to buy a first or new home, 8 per cent to buy an investment property and 6 per cent to sell a home.

Buyers are also adjusting how they approach the market. Some 19 per cent are making lower offers, 17 per cent are reviewing their deposit target and 16 per cent are considering a suburb previously outside their budget.

McCann said conditions will keep changing, but the ownership goal remains, underpinned by the belief that property creates long-term wealth.

"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."