After rising for 22 consecutive months, the national median property price fell in December, signalling a shift in market conditions. Here's what else is making news:

Quick guide to first home buyer incentives
The case for and against rate cuts
How to buy your dream home in 2025
How to know if it’s time to refinance

Quick guide to first home buyer incentives

If you’re a first home buyer, you may be able to secure state or federal government assistance when buying your property.

All states and territories, except for the ACT, offer first home buyer grants, ranging from $10,000 in several states to up to $50,000 in the Northern Territory, provided you’re an owner-occupier. In some states, you must purchase a new home; in other states, both new and established homes are allowed. Income and property price caps may also apply, depending on where you live.

All states and territories, except for the Northern Territory, offer stamp duty concessions for first home buyers, ranging from complete exemptions to partial discounts. Again, conditions apply and these vary depending on the state or territory.

The case for and against rate cuts

There’s a good chance interest rates will be lower at the end of this year than the start, although that’s far from guaranteed.

The case for a rate cut is quite strong. All four major banks believe the Reserve Bank of Australia (RBA) will reduce the cash rate multiple times this year, starting in the first half. Also, late last year, the inflation rate finally fell within the RBA’s target range of 2-3%.

How to buy your dream home in 2025

If you're thinking about buying a property this year, it's a good idea to secure a home loan pre-approval before you start your search. Due to the challenging interest rate and inflationary environment, some people have less borrowing power than in previous years. Once you know how much you can borrow, you'll know the maximum price you can afford to pay for a property.

Before you start home-hunting, I recommend you look for opportunities to increase your savings. This can be done through a combination of reducing your discretionary spending and increasing your income (by asking for a raise, doing more hours or starting a side hustle).

How to know if it’s time to refinance

You should seriously think about refinancing if it's been several years since you took out your home loan, based on the Home Loan Price Enquiry conducted by the Australian Competition and Consumer Commission (ACCC).

That's because, after comparing existing borrowers with new borrowers, the ACCC found:

Borrowers with home loans between three and five years old had an interest rate that was, on average, 0.58 percentage points higher than the average rate for new loans.
Borrowers with home loans between five and ten years old had a rate that was 0.71 percentage points higher.