Here’s a little more fuel for the housing affordability fire, particularly in Sydney, and especially for first home buyers.
This chart will heat up the debate as to whether or not there’s a housing affordability crisis in Australia’s largest city.
According to the ABS, the proportion of owner-occupier loans approved to first home buyers in New South Wales fell to just 8.1% in September, the lowest level seen since the bureau started keeping records back in 1991.
That statistic that will no doubt embolden both sides of the debate, even if it’s for New South Wales rather than its capital.
For those who believe affordability is out of control, the deceleration fits with first home buyers being locked out of the market, despite what well-known Australian demographer, who just happens to be be a baby boomer, saysabout the price of breakfast versus owning a home.
As a proportion of owner-occupier loans, the figure of New South Wales is well below the levels in other mainland states, which range from 11.8% in South Australia through to 26.1% in Western Australia.
However, those on the other side of the debate could argue the decline may be due to first home buyers entering the market as investors, rather than owner-occupiers.
They could also say that it’s merely proof that potential first time buyers need to scrimp and save as they did, something that is often heard, rather than splashing out on discretionary spending, including flashy breakfasts.
According to data from CoreLogic released earlier this month, nominal house prices in Sydney have risen by 95.7% from January 2009.
Given the current trend in prices, they look set to double from that point earlier in 2017.
In 2016 alone, prices in the city have jumped by a further 14.6%..
Coincidentally, Ferrari sales are booming in Sydney at the moment too – and the Italian supercars are still the same price as when the average Sydney house cost half the current figure.
See, the bargains are out there.
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