A slowdown in house prices around the country has improved the prospects for some first home buyers but the improvements are slight and in one major market it’s taking even longer to scrape together a deposit.
First home buyers in Sydney need to save for an average of almost seven years, twice as long as those in Hobart and Darwin, a new report from property advertising group Domain says.
Domain’s first home buyers report says prospective buyers in Sydney would need to save for six years and eight months for a 20 per cent house deposit, and almost six years for a deposit on a unit.
Sydney has the highest average first house prices in the country but it was Melbourne that suffered the biggest relative price increase in the past year, with home buyers having to save for an extra eight months – six years in total – to save enough for an average deposit.
An increase in the number of entry-level home buyers in Melbourne pushed up prices, Domain found, while Sydney experienced a 76 per cent jump in first home loan applications between July, 2017 and April this year.
Hobart and Darwin property were the most accessible of the capitals, at three years and four months each.
Domain’s survey results are based on comparing the average salary for 25 to 34-year-olds and average prices for houses in the more accessible end of the market.
HOW LONG IT TAKES TO SAVE A FIRST HOME DEPOSIT:
* Sydney – 6.67 years (average price of $689,975)
* Melbourne – 6 years (average price of $582,500)
* Canberra – 4.83 years (average price of $542,000)
* Brisbane – 4.17 years (average price of $417,000)
* Adelaide – 3.81 years (average price of $360,000)
* Perth – 3.58 years (average price of $391,000)
* Darwin – 3.33 years (average price of $385,000)
* Hobart – 3.33 years (average price of $300,000)
Source: Domain First Home Buyers Report