Housing affordability in Melbourne has plummeted with house prices growing at two and a half times the pace of household incomes over 15 years.
According to a report by ANZ CoreLogic
, it can take 14 years to save a 20 percent deposit on a median priced house in Melbourne - that is almost double the amount of time it took 15 years ago.
The report also noted that while interest rates have been at an all time low, the low rates have also contributed to greater inequity between those that have been able to own a home and those trying to get into the market.
Another contributing factor is stamp duty. Stamp duty hikes and land tax have meant that buyers need to find more money for their deposit.
The pandemic has not helped either. Affordability has deteriorated across most regions of Victoria, not just the capital city.
The report is designed to inform the discussion around policies that aim to improve housing affordability and track any changes in affordability for home buyers and renters.
It's ok! It's not all doom and gloom. Government initiatives are out there to help first home buyers enter the market and get on their way to owning their own home. It is possible to get into the market but having someone with years of experience and knowledge in your corner to help you is vital.
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