Where mom and dad’s bank of buyers snatch up the first homes
“It is obviously getting harder and harder by the minute,” said Andrew Wilson, chief economist at My Housing Market.
“And that will only get more difficult in the future for first-time buyers.”
Dr Wilson said there was “no doubt” that prices would continue to rise in Melbourne and Sydney until 2022.
“The outlook is therefore reasonably gloomy for first-time buyers.”
The big challenge for first-time homebuyers, Dr Wilson said, was saving enough for a deposit, which was underscored by the recent increase in the number of bank loans approved by mom and dad.
According to data on first-time homebuyers provided to 9News.com.au by financial services group Aussie, there has been a whopping 71% increase in the number of settlements for guarantor loans, also known as the bank. mom and dad, between 2015 and 2021.
Analysis of more than 5,000 real estate transactions for Australian first-time home buyers across Australia this calendar year also revealed which areas had the most first-time home buyer activity.
In Sydney, Seven Hills and Ryde in the northwest of the city have had most of the properties purchased with the bank of mum and dad loans.
In Melbourne, Sunbury and Moonee Ponds in the northwest and Carnegie in the southeast were the three most popular suburbs in the capital city of Victoria.
Dave Hyman, Managing Director of the Lendi Group, said that “soaring house prices” are making it incredibly difficult for young Australians to acquire their first home.
“Many first-time home buyers rely on the support of their parents and grandparents to step up the homeownership ladder.
He warned that parents’ willingness to help their children get a mortgage was also playing a role in increasing demand.
Dr Wilson said that given the speed with which prices were rising, especially in Sydney, first-time homebuyers were “very motivated” at the moment, resulting in intense bidding at auctions.
The Sydney real estate market has seen two quarterly price increases of more than 8% this year, a remarkable phenomenon.
The median home price in Sydney is expected to soon cross the $ 1.5 million mark.
Areas where FHB activity is most important this year:
- NSW: Belmont, Seven Hills, Coffs Harbor, Ryde, Albury,
- ACT: Gunghalin, Queanbeyan
- CIV: Carnegie, Moonee Ponds, Sunbury, Horsham
- QLD: Townsville, Bundaberg, Mackay, Upper Mount Gravatt, Stones Corner, Morayfield, Newtown
- SA: Prospect, Gawler
- WA: Bunbury, Geraldton
- TAS: Launceston, Burnie
Data based on analysis of over 5,000 first-buyer’s real estate transactions by Aussie Brokers.