As first home buyer rates in NSW plummet to their lowest level on record, Australian Property Monitors senior economist says the state still offers affordable options for first home buyers.
The percentage of first home buyers in New South Wales bottomed out at 4.1% in the September quarter, according to the latest ABS statistics.
Wilson, however, is hopeful for a recovery in the market.
The first home buyer average loan over September in NSW was down to $300,000, $6,000 lower than the average over the past four years, he told the Canberra Times.
“Repayments on current historically low interest rates on a $300,000 loan would be around just $400 per week. This is well below Sydney’s median weekly house rent at $500 and unit rent at $480.
Sydney now has 51 suburbs with median house prices below $400,000 and 122 suburbs below $500,000, he said.
"The Harbour City also has 45 suburbs with median unit prices below $400,000 and 98 suburbs below $500,000 with several of these located in the upper north shore, the inner west and the city and east. These include Hornsby, Forest Lodge, Newtown, Ultimo and Eastlakes."
“Expect first-home buyer activity to gradually recover in NSW, Victoria and Queensland as underlying demand increases driven by Australia’s ever-resilient aspiration for home ownership.”
Meanwhile, percentages of first home buyers remain strong in other parts of the country, with Western Australia leading the charge.
WA is the state with the highest of first home buyers moving onto the property ladder, with numbers reaching 31%, according the Bankwest First Time Buyer Deposit Report.
South Australian percentages are also above the state’s long-term average at 14.7%.