Increased first home budgets will help everyone

Of course, the fact that the Reserve Bank has already reduced official interest rates three times this year, with another cut expected by many analysts before the end of 2025, has already boosted confidence levels among home buyers throughout Melbourne’s northern corridor.

However, what many people haven’t fully understood is that the new price caps that will apply to the Home Guarantee Scheme from October will not only benefit those trying to get their foot in the door of the property market, but will also flow through to those in higher price brackets as well.

For example, the new Property Price Cap in Melbourne will rise to $950,000, opening a much wider range of options for first home buyers to choose from. In fact, Cotality (formerly Corelogic) has released data indicating that over 50% of the Australian market will now be available to assisted first home buyers, while over 90% of units will also fall into that category. This means that not only will a much larger pool of home sellers find an increased pool of buyers looking their property, but as these sellers are often upgrading to a larger home in a higher price bracket, this positivity will flow through to the broader market as well.

We’ve been reporting increased levels of buyer confidence throughout 2025, and we saw another example of this in the recent sale of the appealing three-bedroom home in Mill Park you see pictured. This prompt sale was concluded last week at $620,000, and the buyers are looking forward to life as happy homeowners whilst the sellers are looking forward to taking the next step on their property journey.

Remember, if you need any advice or assistance in taking your next step in today’s active property market, don’t hesitate to give us a call at Barry Plant Thomastown on 9466 3233.

Best wishes,

Con Constantinou

Barry Plant Thomastown