Unpacking Australians' property pause

Marina Karpathios
02:15pm October 14 2026

Westpac's Chief Executive, Consumer, Carolyn McCann (left) joins Sylvia Jeffreys (right) on The Pay Off podcast to share insights into how Australians are navigating the current housing market. (Image: Supplied)

Australians haven't fallen out of love with property, but they are struggling to decide whether now is the best time to act.

New Westpac research reveals an emerging national mood for prospective homeowners, torn between ambition and anxiety.

While Australians still believe property is the best way to build long-term wealth, many are delaying major housing decisions as they weigh up personal finances against the state of an economy in flux.

According to the latest Westpac Home Ownership Report, three quarters of Australians are holding off buying until prices fall further, while 73 per cent are waiting for interest rates to stabilise.

Two in five believe now is a bad time to buy a first home and almost half think it's a bad time to sell.

Speaking with Sylvia Jeffreys on The Pay Off podcast, Carolyn McCann, Westpac's Chief Executive, Consumer, says the data shows Australians are erring on the side of caution.

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

Compounding uncertainty is affecting buyer behaviour, with mortgage applications falling around five per cent since May - although improving from the lows of July, when applications were down around 20 per cent.

First home buyers appear to be feeling the greatest pressure. McCann said first home buyer applications are down about 26 per cent as many worry about entering the market at the wrong time.

Still, the data shows that while Australians may be pausing their plans, they have not abandoned them.

Four in five still believe property is the best vehicle for building wealth, while more than half plan to make a housing-related change in the next year, whether that's buying, selling, investing or renovating.

McCann says the data shows an interesting tension. "On the one hand people were saying they're pausing and they're waiting," she tells Jeffreys. "At the same time, around 80 per cent said they were more likely to buy in the next six to 12 months than they were a year ago."

A bide-my-time strategy stems from a belief that a better opportunity may be just around the corner. "There's always this view that someone's going to ring a bell at the top of the market or the bottom of the market," McCann said. "And that just doesn't happen in reality."

While many Australians are waiting, others are adapting. The research found buyers are revising deposit targets, considering cheaper suburbs and taking advantage of softer conditions by making lower offers.

The ongoing issue of housing supply - or lack thereof - is permeating concerns. Although affordability remains the utmost factor in property decisions, almost one in three Australians say there are not enough suitable properties available.

For now, Australians appear to be teetering between making a premature move and fear of missing out.

Don't miss

Related articles

Westpac tips November rate hike, updates housing forecast

By Editorial Team

Westpac names winners of the 2026 Female Founder Awards

By Editorial Team

Anthony Miller on Australian ambition, (housing) affordability and access

By Marina Karpathios
Westpac Wire

Browse topics