If you’ve been keeping an eye on the property market lately, you’ve probably seen the headlines saying house prices are starting to fall.

For buyers, especially first home buyers, it can be a little unsettling. Should you wait? Is now the right or wrong time to buy? Or could this actually be an opportunity?

A recent report by Domain looked back at Australia’s housing market over the past 30 years, and one thing stood out – this isn’t anything new. Australia has now entered its ninth housing downturn in three decades, and every previous downturn has eventually been followed by a strong recovery that pushed property prices to new highs.

The report also found that previous downturns have generally been much smaller than many people expect. On average, they’ve lasted around eight months, with prices falling by just 2.9% before recovering. Compare that to the average upswing, which has lasted almost three years and delivered around 32% growth.

Another interesting fact is that property prices would need to fall by 22.8% just to erase the gains made since March 2023. Current forecasts are nowhere near that, with Sydney expected to fall by up to 7% and Melbourne by up to 8% over the next financial year.

So, what does this mean if you’re thinking about buying?

It could create opportunities. A softer market often means less competition, more room to negotiate, and a little more time to make decisions. Something first home buyers haven’t had much of over the last few years.

The biggest mistake we see is people trying to perfectly time the market. In reality, buying a home should be about whether you are ready or not, not whether the market is ready.

If your income is stable, your finances are in good shape, and you’re planning to own the property for the long term, a short-term dip in prices is often much less important than buying the right home with the right loan.

Property markets will always move in cycles. The headlines might change, but history shows that downturns are a normal part of the market, not necessarily a reason to put your plans on hold.