A growing number of first homebuyers are going it alone or seeking government assistance to get their foot onto the property ladder, according to new research.
New data released today by the Commonwealth Bank shows the proportion of first home buyers buying a property by themselves - instead of with a partner, friend or family member - increased to 40 per cent in the first six months of 2024, up from 35 per cent in 2019.
There has been an even bigger surge in the number of first homebuyers taking advantage of government-funded initiatives in order to get their foot on the property ladder, the bank also found.
A block of units in Gosford, New South Wales Australia with three for sale signs out the front. (iStock)The use of first homebuyer guarantees soared 45 per cent between the 2021 and 2024 financial years.
"With property prices rising consistently and the current cost of living pressures, it is not surprising to see first home buyers looking at all of the options available to them – be it via innovative loan types, loan policy or government grants and incentives – in order to acquire their first home," Executive General Manager Home Buying at CBA, Dr Michael Baumann, said.
The new data comes amid news that house prices across Australia are continuing to rise, seemingly in defiance of the country's cost of living woes.
Over the past month in August, average dwelling values climbed by 0.5 per cent, according to CoreLogic's Home Value Index.
The median-valued home is now worth more than $800,000 - jumping to $802,357 from $798,207 in July.
But the findings indicate the pace of growth in the real estate market was showing signs of slowing with Melbourne, Hobart, Darwin and Canberra posting small declines, while prices continued to rise in Sydney, Brisbane, Adelaide and Perth.
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Across Australia, the national average first home buyer home loan size is now around $498,000, the Commonwealth Bank said.
First-home buyers in metropolitan areas had an average home loan size of almost $530,000 compared to $403,000 for regional-based first-home buyers.
While the average loan size for regionally based first-time buyers was lower than buyers based in cities, their average loan-to-value ratio (LVR) was higher.
According to CBA data, the average loan-to-value ratio for regionally based first-time buyers was 86 per cent in the last financial year - higher than the 82 per cent average loan-to-value ratio for first-time buyers in cities.
