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Staff Reporter
The number of first home buyers in the market could be set to grow as deposit requirements ease.
New research by CANSTAR CANNEX found the flat housing market is also opening up opportunities for first home buyers.
While capital city home prices have increased in value, demand is no longer driving property prices.
“We’re seeing property staying on the market for longer, giving more room for property buyers to negotiate the price down,” CANSTAR CANNEX financial analyst Mitchell Watson said.
“Affordability always has been, and probably always will be, the biggest hurdle first home buyers have to clear and the fact that property is not selling as frantically as it was a couple of years ago should give prospective buyers more breathing space.”
First home buyers have taken an added hit with the demise of the government boost, however, lenders are showing signs of relaxing their loan-to-value ratios, or the amount of money they will lend on a property.
“In the last 12 months we’ve seen at least 25 lenders ease their deposit requirements and increase their LVRs to assist borrowers getting into the market for the first time,” Mr Watson said.
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