New data from Mortgage Choice highlights attitudes of first home buyers.
More than 80% of first home buyers who are planning to purchase property within the next two years believe housing is unaffordable in their state.
According to Mortgage Choice’s annual First Home Buyer Survey, 80.6% of those purchasing property for the first time consider housing to be ‘unaffordable’.
Local Mortgage Choice franchise owner, Peter Dall said the issue of unaffordable housing was more predominant in certain states.
“The percentage of first home buyers who consider housing to be unaffordable is significantly higher in New South Wales and Victoria than it is in Queensland and South Australia,” he said.
Across the country, first home buyers in New South Wales were the most disillusioned about property prices, with 86.9% of respondents stating housing was unaffordable in their state. Victoria was next with 85.7% of first time buyers saying property was too pricey. Meanwhile, in South Australia and Queensland 76.8% and 75.4% of first home buyers respectively said housing was unaffordable in their states.
Peter said it was unsurprising to see the majority of first home buyers believe housing is unaffordable, as data from the Australian Bureau of Statistics shows the average home loan has grown almost four times faster than the average Australian full-time wage in the last two years.
According to the data, the average home loan grew by 18.5% in the two years to April 2015 – from $301,800 to $357,500. Meanwhile, the average Australian full time wage grew just 3.6% from $77,225 to $80,054.
As a result, the average home loan size in Australia is now approximately 4.5 times larger than the average wage – up 25% in the last two years. In 2013, the average loan size was 3.9 times the average full-time Australian wage.
“These statistics are worrying as they clearly show wages aren’t keep up with property prices,”
For further information or to arrange an appointment, give Peter a call on:
0414 583 233 or email him at email@example.com