Why first-time buyers are coming to the market
The latest Australian Bureau of Statistics (ABS) lending figures show the value of owner-occupier loans rose 2.9% to $18.9 billion, 21.4% higher than July 2023.
And while the value of new owner-occupier first home buyer loans rose just 0.8% in July, this was 19.7% higher than July 2023.
This suggests first-time home buyers are still keen to get on the property ladder, and are working towards the great Australian dream of owning their own home.
Living the dream
Indeed, digital bank ubank has released new research revealing how Gen Z and Millennials are feeling about their chances of home ownership, and some of the factors they find stressful and confusing along the way.
According to the research, over half (56%) of Gen Z and Millennial non-homeowners looking to make the dream a reality within the next five years and 89% of this group agreeing that it’s one of their goals in life.
While most (95%) non-homeowners reported barriers, with the main ones being high property prices (63%), difficulties in saving for a deposit (42%), and high interest rates (39%), the ABS lending figures suggest many are finding ways to overcome these barriers.
Interestingly, according to new data from CommBank, there is a growing proportion of first home buyers choosing to go it alone; the data found 40% of first home buyers purchased a property alone (rather than with a partner, friend or family member) in the first six months of 2024, up from 35% in 2019.
So how are they doing it?
Here are some possible reasons:
- Increased support for first-time buyers
The recent budget announced the introduction of a new housing affordability package. This includes a number of initiatives designed to make it easier for first-time buyers to enter the property market, such as stamp duty concessions and grants for eligible buyers.
The CommBank data found the proportion of first home buyers using government-funded guarantees has increased in recent years.
- Innovative loans
Some finance providers are pulling away from the traditional lending structure. For instance, there are some options that allow home buyers and investors to split the cost of buying a home with family or friends while retaining individual control of their finances.
Brokers can also be a good option for first home buyers, as they often have access to other financial providers not listed on the comparison websites.
- Interest rates relatively stable
After last year’s rapid rate increases, the economy has settled, and while rates are subject to fluctuations and may rise in the future, the current market remains relatively stable; indeed, eager to get the business, some comparison sites are currently boasting first home buyer home loans with rates as low as 5.59% (comparison rate^ 6.29%).
- Emotional and financial readiness
The journey toward home ownership is often emotional as well as financial. Today, many first-time buyers are not just financially prepared but are also emotionally motivated to take that next step. Some younger generations clearly do have a strong desire for stability and investment, and owning their own home not only fulfils a lifelong dream but also represents a significant financial commitment that can yield long-term benefits.
With the above in mind suggesting there is a relatively strong first-home buyers’ market, if you are thinking of upsizing, now might well be the time to do it!
Spring is the traditional time to sell, so even if you’re thinking of downsizing, or a change in lifestyle, why not find out what your property could achieve in today’s market?
Property appraisal at your fingertips
Use our free online appraisal tool by powered by CoreLogic to find out what your property is potentially worth.
Simply scan in the QR code below, enter your address and instantly receive a CoreLogic/Rpdata report with an estimate of your property pricing, plus all the latest statistics for your suburb.
You may be surprised with the figure; in the 13 suburbs we cover in our half yearly local property report, there has been solid growth in the region, with an average increase of 8.6%.
If using our tool has given you food for thought, contact us direct so we can come around and give you a more accurate free, independent and non-obligatory quote.
Our experienced team can also give advice on how to present your property features to maximise your sale price. Plus, as we have developed unique marketing strategies to ensure your house appears at the top of the search list for your particularly type of property plenty of properties are sold within 30 days on the market.
We are a family run business with nearly 50 years’ experience, have a database of potential buyers to market to, so we can get your property in directly in front of genuinely interested people – we’re constantly achieving great results and our aim is to make your sale as stress-free as possible.
Call in and see us in the Cardiff office, give us a call on 02 4954 8833 or send us an email to: mail@apnewcastle.com.au.
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