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Market low means it’s time for first home buyers
First-time buyers looking to break into the property market might be able to do so sooner than they expect due to falling house prices and low interest rates, new analysis has said.
Market low means it’s time for first home buyers
First-time buyers looking to break into the property market might be able to do so sooner than they expect due to falling house prices and low interest rates, new analysis has said.
According to results released by comparison site Finder, an average property price fall of $152,000 between June 2017 and June 2019 has made it easier to save for a deposit.
For the average Sydney couple, this decline in value has shaved 21 months off the time needed to save a 20 per cent house deposit. This is assuming each individual earn $1,695 per week and puts 10 per cent of their weekly income towards a deposit.
Bessie Hassan, money expert at Finder, said the reduced property prices and low interest rates have combined to create the perfect storm for first-time home buyers.
“Aussies who have saved for years might be finding they’re able to afford a larger place, or put down a bigger deposit than expected because of the dip in the market,” Ms Hassan said.
Darwin took out second place behind Sydney, with property prices falling by $50,000 on average since 2017. This is shaving seven months off the time required for couples to save a deposit.
Melbourne, which did not experience as significant a drop in prices, has only seen four months off the deposit saving time, while Canberra, Greater Hobart and Adelaide are currently peaking, meaning zero change to the deposit saving time frame.
However, the research also found that units tell a different story, with price drops evident across almost every major capital city in Australia.
“Units are often the more affordable option, especially in larger cities. But with many abandoned building projects and delayed developments, even these prices may be artificially high in some places,” Ms Hassan concluded.
nestegg has previously reported why buying an apartment could be a 'horrible and high risk' investment.
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