Invest
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.
About the author

About the author


Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more