Domain analysis indicates Sydney first-home buyers now need to save for seven years and one month for a deposit for an entry-level home, up six months on a year ago.
Hobart first-home buyers also need to save for six months longer than they did a year ago, while Canberra first-home buyers need to save nine months longer.
Harder to save for a home.
The median house price in Sydney is currently $1,186,518, according to CoreLogic. Therefore, the $770,000 price listed above by Domain would purchase a poor quality house in the ‘back arse of buggery’.
The deposit hurdle will only get worse over the coming year given the extreme price growth being experienced across every market, led by Sydney, alongside slow wage growth:
Broad-based mega boom!
At the same time, those already ‘in the market’ are enjoying much cheaper repayments amid the cratering of mortgage rates to all-time lows:
Big fall in debt repayments.
Suffice it to say, it has never been cheaper in most markets to service a mortgage, but never more expensive to save for a deposit.
