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Soaring House Prices Results in Lesser First Homebuyers in NSW

March 11, 2015

WA has the most active first home buyers in Australia, but the rising house prices have made property market debutants a rarity in NSW.

In Western Australia, first home buyers accounted for almost one in five loans written in February. But in NSW, the rising prices makes home buying process a daunting task, also with the removal of many government incentives, homebuyers accounted for less than four per cent of new loans.

Mortgage Choice spokeswoman Jessica Darnbrough said, “This is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price”.

Sydney’s median dwelling price of $680,000 is the highest of all Australian cities – $150,000 higher than closest rival Darwin. Along with it for first time home buyers in Queensland there are stamp duty concessions for established properties, and a far lower median dwelling price of $452,000 in Brisbane.

Throughout the Australia, first home buyers are having a tough time breaking into the market, forced to compete with investors, attracted by low interest rates, being driven to housing.

Treasurer Joe Hockey proposed that allowing first home buyers to dip into their superannuation to help them get into the property market.

But Ms Darnbrough expects a slight pickup in first home buyer activity in the near future as low interest rates and proposed government incentives lure new buyers into the market.
“Some state governments have suggested that they will introduce various new first home buyer incentive programs if elected,” she said.

She further added, “If these promises come to fruition, we should see a small lift.”

Here is the FIRST HOME BUYER PARTICIPATION BY STATE

  • NSW – 3.9 pct of new home loans
  • SA – 4.7 pct
  • VIC – 17 pct
  • QLD – 17 pct
  • WA – 19.6 pct

News Source: http://www.sbs.com.au/news/article/2015/03/11/first-home-buyers-scarce-nsw

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