First-home buyers are out in force and well prepared to challenge their more experienced counterparts in Adelaide’s competitive market.
Industry experts say the city’s affordability, interest rate cuts – the latest taking the official cash rate to 3.85 per cent – as well as government incentives are fuelling them.
It comes as CBRE’s latest national survey of residential valuers reveals first-home buyers were most active in Adelaide and the ACT.
Ray White SA chief executive Matt Lindblom said affordability was a major factor.
“We’re seeing that properties in that $500,000 to $900,000 price bracket, a lot of first-home buyers are buying in that range,” he said.
“The most competitive auctions and where we’ve got the highest clearance rates are in that bracket.
“You can still buy a two or three-bedroom property with reasonable proximity to Adelaide in that price range, and it will be a nice home.”
Mr Lindblom said unlike other cities, Adelaide’s more affordable northern and southern suburbs were still attracting strong interest because they were easily – and quickly – accessible from the city.
Falling interest rates and government incentives were also driving first-home buyers, he said.
In South Australia, those looking to buy a new build or off-the-plan apartment, a house and land package, or vacant land to build a new home could be eligible for the first home owner grant and stamp duty relief.
Mr Lindblom said the Federal Government’s first home guarantee scheme allowing buyers to purchase with a 5 per cent deposit was also enticing.
“First-home buyers are competitive, they’re prepared, they’re unconditional – they’re educated around what they need to do to get a property,” he said.
Real Estate Institute of South Australia chief executive Andrea Heading said while prices were rising across the state, first-home buyers were willing to pay fair prices.
“Vendors are seeing a good return but first-home buyers are feeling more confident in terms of what the expectation is,” she said.
“People have to remember first-home buyers aren’t a certain demographic, or young people, as well.”
Ms Heading said many were mature or have been long-time renters.
Meanwhile, she said more people were open to purchasing units and apartments before a house.
She encouraged those buying their first home to be realistic about price, “as in, what does an entry point look like for you?”
Article by Jessica Brown, sourced from realestate.com.au. You can find the original article here
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