page top

First Home Buyers Gain Confidence as Market Slows

Attention: open in a new window. Print

get into your own home sooner thanks to the slowing housing market

With the federal election looming, the housing market continues to be a timely discussion topic amongst politicians and the general public. While it’s not ideal for everyone, a softening housing market is good news for an entire generation of young people who have been waiting for their chance to pounce. 

According to Core Logic data for the month of March, Sydney real estate property values have been falling since they peaked in the middle of 2017 (after prices surged up to 80% since 2012). Property values have fallen by 3.2% since the beginning of the year, with the Sydney market now down 13.9% since the property peak in July 2017. 

Declining prices have affected houses more than apartments, with more expensive houses experiencing the biggest drop as affordability comes to play a role in sale prices. First home buyers are emerging as investors take a step back, foreign buyer interest declines and more choice becomes available on the market. Purchase conditions have undoubtedly improved.

While Sydney remains the most expensive capital city in Australia, affordability has improved for most entry-level buyers. Core Logic reports Sydney homes took on average 74 days to sell over the first quarter of 2019, compared with 33 days 12 months ago. Properties are being discounted by vendors by an average of 7.1% while 12 months ago the average vendor discount was just 4.7%.

Consumer confidence has grown as people consider affordability to be improving. According to Westpac/Melbourne Institute's monthly consumer confidence survey for April, the "time to buy a house" index rose 2.4 per cent to a four-year high, having risen by around 33 per cent from its mid-2017 low.

It’s expected the Sydney housing market will remain weak for the first half of 2019 at least, with investor interest declining as an oversupply of new apartments enter the market and people wait for the election outcome.

Wherever you are in your home buying journey, whether it be saving for a deposit, or ready to bid at an auction, Endeavour Mutual Bank can assist.  As a first home buyer, Endeavour will provide access to continued support and up to date information every step of the way to make the process as straight forward as possible. The friendly staff at Endeavour can help to guide you through the process of applying for a home loan and ensure you are on the right path.  If you are ready to buy and want to take advantage of the current housing climate, a fast approval will ensure you are in a position to act when the right property presents itself. The lending specialists at Endeavour can assist you in obtaining a full approval quickly and easily.

To find out more about preparing yourself for purchasing property contact us or explore our easy to follow Home Buyers Guide for some more handy hints and tips.    

Alison Gallagher is a freelance writer, resourcefulness expert and entrepreneur. She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.