Is this the best time to buy?
affordability has certainly improved but is this the right time to buy?
IMO it would depend on the area.
I would have liked to see a price correction or at least a long period of stagnation before buying in an area so that I'm starting with a price advantage.
I'm saying this because a lot of people are now out there buying and pushing prices up.
So if a property was overpriced before and it's price didn't come down it's likely that you'll be paying too much in this market.
Assuming that prices in an area have corrected a bit from their peak,
and you are a first home buyer and you want to take advantage of the FHOG
but can't decide whether to buy or wait, you should think of the possibility of prices going up 20% and staying there for a few years.
It is possible that if you wait you'll end up paying 20% more anyway and later on you won't be getting the FHBG or the stamp duty exemption either.
If it was me I'd want to be in this market but I wouldn't overspend.
I'd buy something I can afford now as well as later when interest rates go up to the 7's and 8's.
And there is no doubt that they will go up so be prepared.
My advise? put a roof over your head.
It will be the best thing you've done in your life but remember,
DON'T OVERSPEND
Your first property does not need to be the perfect property.
Get a place you can add value to over time and you can use it as a stepping stone for something bigger and better later on in life.
Good luck