Home Loans & Mortgages

Why First homebuyers aren’t buying? Affordability!

During the last 10-year period, house prices have risen highest in Perth and Brisbane, where home prices for a new home have nearly trebled over the past decade. That is making homes unaffordable for first home buyers. Especially with talk of higher interest rates

Housing prices have trebled over the past ten years and wages have gone up maybe 50%?
A report suggests that two-thirds of Queensland families would not be able to afford a median-priced home, a new housing industry study shows. I do have some problems with this housing market report, and I’ll point those out in a minute. But it does highlight the fact that the dream of homeownership in Queensland has become largely unaffordable to Joe and Jill average first home buyer.

Interest rate rises hit everyone, those with higher pays in the Mining States of Western Australia and Queensland, as well as those consumer based economies in States in the South Eastern States of Australia, who haven’t enjoyed these pay rises businesses who can only dream of the raises in demand for their goods and services, or workers not enjoying the higher employment rates in high income work, as the wealth of the mining boom filters through the economy.

There is a lot of speculation on Australia’s home loan interest rates, both here and in the US, that Australia’s wonderfully low unemployment rates and growing business investment will mean RBA will have to lift its interest rates, and how that will affect the housing market.