Average Home Loan Deposit Exceeds $100,000
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Average Home Loan Deposit Exceeds $100,000

The barrier for first home buyers tops six figures.

By Terry Christodoulou
Tue, Apr 13, 2021 11:58amGrey Clock < 1 min

As record-low borrowing costs, stimulus payments and low stock levels send home prices to unprecedented heights, the average deposit required by first home buyers has topped $100,000.

Recent Australian Bureau of Statistics data has revealed the national average deposit needed to secure a mortgage is no $106,743, a 16% increase from January 2019, and the first time in Australia’s history the average deposit has exceeded $100,000.

The ACT had the largest house deposit increase since 2019, with the upfront amount required surging by 24 per cent to 117,790. NSW was just 1% behind at 23% for an average of $128,469.

The average deposit in Tasmania has climbed by 17% to $81,438 while Queensland (13%) and Western Australia (14%) sit at $95,784 and $92,784 respectively.

South Australia is the only capital city offering stable first home buying conditions with an 8% increase since 2019 to $85,710.

 



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Home values continue their upwards trajectory, recording the strongest monthly growth in 18 months, CoreLogic data shows.

The property data provider reports that their Home Value Index has noted a third consecutive rise in values  in May, accelerating 1.2 percent over the past month. This is on the back of a 0.6 percent increase in March and 0.5 percent rise in April.

Sydney recorded the strongest results, up 1.8 percent, the highest recorded in the city since September 2021. The fall in Sydney’s home values bottomed in January but have since accelerated sharply by 4.8 percent, adding $48,390 to the median dwelling value.

Melbourne recorded more modest gains, with home values increasing by 0.9 percent, bringing the total rise this quarter to 1.6 percent. It was the smaller capitals of Brisbane (up 1.4 percent) and Perth (up 1.3 percent) that reported stronger gains.

CoreLogic research director Tim Lawless said the lack of housing stock was an obvious influence on the growing values.

 “Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April. Inventory levels are -15.3 percent lower than they were at the same time last year and -24.4 percent below the previous five-year average for this time of year,” he said.

“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market. 

“Amid increased competition, auction clearance rates have trended higher, holding at 70 percent or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.” 

Vendor discounting has been a feature in some parts of the country, particularly prestige regional areas that saw rapid price rises during the pandemic – and subsequent falls as people returned to the workplace in major centres.

The CoreLogic Home Value Index reports while prices appear to have found the floor in regional areas, the pace of recovery has been slower.

“Although regional home values are trending higher, the rate of gain hasn’t kept pace with the capitals. Over the past three months, growth in the combined capitals index was more than triple the pace of growth seen across the combined regionals at 2.8% and 0.8% respectively,” Mr Lawless said.

“Although advertised housing supply remains tight across regional Australia, demand from net overseas migration is less substantial. ABS data points to around 15% of Australia’s net overseas migration being centred in the regions each year. Additionally, a slowdown in internal migration rates across the regions has helped to ease the demand side pressures on housing.”

 

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