First home market insights

The changing face of the first home market

Author: Ben Reid - Manager VAA

It’s not surprising that as official interest rates have risen over the past year or two, one of the market segments that have been impacted more than most is the first home market.

From rising rents and reduced borrowing capacity to increases in property values and the costs associated with taking that first step into the world of property ownership, there has been a great deal of media commentary on the challenges facing market entrants around Australia.

However, we came across some figures this week that showed just how much the first home market in Australia has changed in recent years.

We have posted figures before in these pages noting the rising median age of first time homebuyers, however a recent analysis from Digital Data Analytics shows that the average age of first home buyers in Melbourne and Sydney has increased from the mid-20’s to the mid-30’s in the space of the last ten years alone!

Another aspect of the changing first home market can be seen in additional figures from the same analysis which indicates that the typical mortgage term today is around 30 years. This has increased from 20 years over the same ten year period.

Of course, one of the best ways to gain an edge in today’s competitive property market, whether you are buying your first home or your last, is to have an experienced Advocate by your side, providing advice and guidance as well as access to off-market homes that are not available to the broader public.

If you would like to discuss the difference that one of the team at Ian Reid Buyer and Vendor Advocates could make to your next purchase, you give us a call on 9430 0000.

You’ll also find lots of helpful tips for homebuyers in our free booklet, “WINNING BUYER STRATEGIES” so be sure to download a copy while you’re here.

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