First Home Buyers: Is Getting into the Adelaide Market Actually Getting Easier?

For many South Australians, buying a first home can feel like a moving target. Deposit requirements, borrowing capacity, interest rates and Adelaide property prices all play a part.

And while there are now more support pathways available to eligible first-home buyers, getting through the door can still be challenging.

So, is buying your first home in Adelaide actually getting easier? The latest lending data suggests the answer is more complicated.

First-home buyer demand has fallen sharply

New Equifax data shows mortgage demand among first-home buyers fell 20.1% in the year to August 2026, the largest annual decline since 2022.

Equifax says the decline reflects growing caution around taking on new loans, as households continue to navigate borrowing costs and cost-of-living pressures.

This is happening even as conditions in Adelaide’s property market have begun to shift.

Adelaide buyers are facing a different market

After several years of strong growth and a market much more favourable for sellers, Adelaide property values have started to ease. In August, values fell 0.8% according to Cotality.

For first-home buyers, this shift can mean less competition and more time to consider a property before making a decision. But it doesn’t necessarily make buying affordable.

A smaller deposit doesn’t mean a smaller mortgage

The expansion of the Australian Government’s 5% Deposit Scheme has lowered the deposit requirement for eligible first-home buyers, allowing them to purchase with a minimum 5% deposit and without Lenders Mortgage Insurance under the scheme.

So while a smaller deposit can reduce the upfront hurdle, it does not change the price of the property or the size of the mortgage that follows.

In fact, the average first-home buyer loan has now reached an all-time high of around $740,000, according to Equifax.

This helps explain the gap between greater access to the market and actual affordability. Getting together a deposit may be more achievable for some buyers, but borrowing capacity, interest rates and ongoing ownership costs still determine what they can comfortably afford.

So, is buying your first home getting easier?

In some ways, yes. Eligible buyers may have a lower deposit hurdle, while softer market conditions can mean less competition and more time to make a decision.

But the underlying cost of buying remains significant. The combination of high property values and larger loan sizes means the challenge for many buyers has shifted from simply getting a deposit together to finding a property they can comfortably afford.

That makes flexibility particularly important. Looking across different suburbs, considering units or townhouses, and being realistic about property size can all open up more options.

What should Adelaide first-home buyers be looking at?

If you’re considering buying your first home, it can help to look beyond the headline price.

• Your borrowing capacity - What a lender may approve and what you can comfortably afford are not necessarily the same thing.

• Your total upfront costs - Consider your deposit, stamp duty where applicable, conveyancing, inspections and other purchasing costs.

• Your location options - Being flexible about suburb can open up more opportunities and help your budget go further.

• Property type - Units, townhouses and established homes can offer different entry points into the Adelaide market.

• Current competition - Understanding demand for the type of property you’re looking for can help you assess your position as a buyer.

• The longer term - Consider how the property will work for you beyond the day you receive the keys.

Need advice on the Adelaide property market?

For first-home buyers, the Adelaide market is changing but that doesn’t necessarily mean buying has become easier across the board. There may be more ways to get into the market, but affordability remains a key consideration once you’re there.

Whether you’re looking to buy, sell or invest, understanding current market conditions can help you make informed property decisions. At Key and Stone Property, we help Adelaide homeowners, buyers and investors navigate changing market conditions with confidence.

If you’re thinking about your next move, let us know how we can help. Our team would be happy to provide guidance on the current market and help you plan the next step in your property journey. Get in touch with us today!

Readers should seek independent legal advice tailored to their specific circumstances. Key and Stone Property Pty Ltd do not accept any liability for the accuracy or applicability of the information provided herein. This article is intended as a general guide only. RLA 339 033.