New data has shown a dramatic drop in new homebuyers across NSW – only about 1 in 10 loans are for first-timers.
And no wonder given it now takes an average of nine years for Aussies to save a deposit for a modest first home.
For example, western-Sydney suburb Jordan Springs is sold as a home owners oasis, but for first-time buyers, they’re fast drying up.
“Areas like this are like the last bastion of affordable real estate for people that are wanting to get into the market,” New Living Homes real estate agent Andrew Egan said.
Basic house and land packages in the suburb start at $620,000 and Egan said three-quarters of his buyers are first timers – meanwhile agents he knows elsewhere, never see any first-time buyers.
“They have seen a definite turndown in the first home buyers market because it is becoming unaffordable,” Egan said.
It seems not even record-low interest rates can tempt them.
So far this year, just 11% of NSW’s home loans are first-timers.
The state opposition blames the cut to the first homebuyers grant.
Ryan Park, Shadow NSW Treasurer said: “It becomes nearly impossible to do it on your own. That is why the first homeowners grant was established.”
When comparing price to income behind Belgium, New Zealand and Canada, Australia is the fourth least affordable country for housing, and the Sydney property market is a huge contributing factor for those figures.
Three out of five buyers in Australia despair about being able to afford to buy their dream home.