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New research has found there are half as many first home buyers (FHBs) in the market as a proportion of total buyers in 2016, than in 2009.
A new national report from Bankwest has revealed that the proportion of FHBs in Australia has declined steadily over the last five years to 13.4 per cent in 2016, with the remainder repeat purchasers or investors, compared to 28.8 per cent in 2009.
The 2016 Bankwest Financial Indicator Series’ First Time Buyer Deposit Report shows Australian couples will have to save for an average of 4.4 years to accumulate the $103,600 needed for a 20 per cent house deposit on a median-priced home.
This is two months longer than in 2015 (4.2 years) and a $3,900 increase on the $99,700 deposit required last year.
Bankwest executive GM for retail, Andrew Whitechurch, said it was taking Australian FHB couples longer to save a deposit on a median-priced house in every mainland state and territory except for Western Australia.
“Western Australia bucks the national trend, being the only state where it takes less time for an average first time buyer couple to save for a house than it did last year,” he said.
Mr Whitechurch said the average time was down marginally to 3.5 years this year from 3.6 years in 2015. This, he added, is well below the national average.
“Low interest rates, sluggish wage growth, and rising house prices are making it increasingly difficult for first time buyers to get a foot on the property ladder in most capital cities in Australia.
“Australia’s median house value grew 3.9 per cent to $518,000 in the 12 months to June 2016, while variable-lending rates on owner-occupier housing loans are notably lower than the 10-year average rate of 6.93 per cent.
“We’ve seen extremely strong growth in property values in Sydney and Melbourne, while wages have grown by just 2.2 per cent nationally,” he said.
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