The time it takes a couple to save a deposit on a house has shrunk by eight months, but the amount needed to repay their mortgage has ballooned to a record high.
The time it takes for a couple to save a 20 per cent deposit to buy an entry-level house has shrunk by eight months nationwide since interest rates started rising last May, as falling prices reduce the amount they need to stash away and improving wages and higher interest rates on savings bolster their finances, a new report from Domain shows.
Meanwhile, a separate study from the Australian Housing and Urban Research Institute found that it was virtually impossible for any 25-34 year olds to save up enough deposit on their own, amid higher property prices and surging costs of living. The rest of the capital cities posted a smaller improvement of between 1 month and five months due to the stronger performance of their housing markets.
In Sydney, dwelling values slumped by 13.1 per cent or $151,272, while Melbourne dropped by 9.5 per cent or $77,910.During the same period, interest rates on savings rose to 3.95 per cent on average compared to a year ago, while wages climbed 3.3 per cent – the fastest increase in a decade.
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