First Home Buyers: Finding Opportunity in a Tight Market
First home buyers are facing a tougher market, but opportunities remain for those who plan carefully. New KPMG analysis shows just 12% of homes nationally are affordable for the average first home buyer, down from 30% five years ago. In New South Wales, that figure sits at 5%, highlighting how competitive established property markets have become.
But buyers aren’t standing still. Instead of chasing median-priced homes, many are expanding their searches to apartments, outer-ring suburbs and regional markets. That shift is starting to show up in the data. Cotality research found homes priced under the expanded 5% Deposit Guarantee caps rose 3.6% in the December quarter, outperforming higher-priced properties.
For first home buyers, the opportunity increasingly lies in flexibility. Expanding search areas, considering different property types and structuring your home loan carefully can make a meaningful difference. With the right strategy, getting a foothold is still possible, even in a constrained market.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.