First home buyers continue to “languish at near record-low levels” as wages grow at their slowest pace in almost 20 years.
Looking at wages growth between December 2008 and March 2016, data from CoreLogic RP Data shows that wage growth has been less than half that of cumulative house price growth over the same period.
Nationally, wages have increased by 23.4% between December 2008 and March 2016, whilst home values have increased by 51.7% across the combined capital cities. Wages are now growing at their slowest pace in at least 18 years, according to CoreLogic RP Data.
CoreLogic RP Data research analyst Cameron Kusher said this is particularly noticeable in New South Wales and Victoria.
“While the increases highlighted include strong wage increases in the latter part of the mining boom, nonetheless, it shows that in NSW and VIC wages are increasing at a much slower pace than home values in Sydney and Melbourne are,” he said.
House prices in Sydney have growth by 80.2% over the period whilst wages in NSW have increased by just 23%. In Melbourne, home values are up 67.8% whilst wages in VIC are up just 23.6%.
However, Kusher said this is having the most profound effect on first home buyers.
“While lending to owner occupier first home buyers has fallen, lending to investors and subsequent buyers has increased in most states and territories with substantial rises in NSW and VIC,” he said.
“Those that do not yet own a property will struggle to compete with investors and upgraders who have been active in the market and where significant equity has been acquired.”
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
tweed heads south
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out