Australia’s housing market is showing renewed signs of strength, with declining interest rates driving improved buyer sentiment and a rise in property listings.

According to NAB executive Denton Pugh, the sector has “reached a turning point” following the Reserve Bank of Australia’s February rate cut, with expectations of further reductions ahead.

“This isn’t a boom, but the tone has changed,” Pugh said, noting increased activity from first-home buyers and upgraders.

In March, national home prices rose 0.4%, with Darwin, Adelaide, and Brisbane leading the growth. Listings increased 6.1% year-on-year, particularly in Sydney and Perth.

REA Group economist Angus Moore observed that lower borrowing costs and strengthening prices are encouraging sellers back into the market—supportive conditions for lending activity.

While market momentum is improving, affordability and supply constraints remain significant.

PropTrack data showed a more modest national increase of 0.3% in March, with Sydney and Canberra posting the highest growth.

REA economist Eleanor Creagh forecasts steady and measured gains, rather than rapid price escalation—providing a more stable environment for mortgage planning and risk management.

Ongoing debate surrounds Labor’s proposal to expand the First Home Guarantee Scheme.

Critics argue it may increase demand without addressing supply issues, while proponents believe it could help first-home buyers overcome deposit hurdles—potentially increasing the pool of eligible borrowers and stimulating further lending activity.