Affordability issues will continue to plague first home buyers as the weather draws warmer, the Real Estate Institute of Victoria (REIV) has claimed.
According to REIV’s analysis of sales results in Victoria, there is still a large gap between demand and supply.
In addition, the number of Victorian first home buyers has fallen from around 4,500 in the autumn of 2009 to 2,500 in recent months, according to figures from the Australian Bureau of Statistics.
“This is a problem for first home buyers in particular, who don’t have the advantage of benefiting from capital growth in the way that second and third home buyers do,” the statement said.
“Victorian first home buyers purchasing an existing home are entitled to exactly what they were entitled to a decade ago, the $7,000 grant.
“Unfortunately, as house prices have more than doubled in that time, the grant is worth less than half in real terms,” the statement said.
“First home buyer assistance needs urgent reviewing and improving or thousands of young people will miss the opportunity to buy their own home.”