Homes became affordable again for average income buyers in 20 suburbs
During the boom times they were out of reach but now home buyers on an average income are getting access once again to previously inaccessible suburbs in Sydney’s west and southwest.
New figures showed median prices in 20 suburbs — including Bankstown, Granville and Harris Park — are now affordable for those earning Sydney’s average full-time salary of $83,000 a year.
Median prices in these areas had hit levels of up to $640,000 last year but have now dropped to under $500,000, according to CoreLogic.
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This means the potential mortgage repayments will no longer eat up more than 30 per cent of an average buyer’s income, a measure often used to determine if a purchaser can afford a loan on the home.
But it is not just middle-income buyers reaping the benefits. Lower-income earners can also cash in. Those on about $72,000 a year can now afford to go looking for apartments in Rosehill in the Parramatta area and Liverpool. The bulk of the units in both suburbs are now under $450,000.
Liverpool agent Glen Craigie, from McGrath, said it was a “very good time” for first-home buyers to get into the market.
“We are meeting a lot of buyers who had previously been priced out of the market who are realising they now have a chance,” Mr Craigie said.
“Some have been waiting for this moment. A lot of the buyers work in jobs like nursing. They’ve had time to build up their savings and there aren’t as many other buyers who can (outbid) them.”
Last year, people on $72,000 could only happily go home hunting in a cluster of suburbs around Blacktown, Campbelltown and Fairfield, such as Carramar, Mount Druitt, Leumeah, Canley Vale and Ambarvale.
And prices in these areas became even more affordable over the past year, with buyers now getting their hands on properties for as low as $300,000.
First homebuyer Darlene Chuon, 26, recently capitalised on the favourable buying conditions. She snapped up a one-bedroom unit in new Frasers Property development Ed.Square in Edmondson Park and said she was surprised how affordable the prices were.
“I wasn’t actually planning to buy any time soon,” Ms Chuon said. “I thought I’d be buying in a few years but I just came across the unit and realised I could get it now.”
Prices in the development started from $445,000, which Ms Chuon said was well below other properties she saw in areas such as the northern beaches and inner west.
“I got a strong sense it was a very good time to buy,” she said.
The increased buying opportunities have followed a 14.5 per cent drop in prices across the Greater Sydney area since July 2017 when the market was at its peak.
CoreLogic analyst Cameron Kusher said diminished investor participation in the market helped fuel the drop in prices.
Macquarie Fields resident Ruksanah Sagvand recently bought her first home — a unit also set to be built at Ed.Square — and felt the lower prices made the purchase a good investment.
“Other properties did not catch my interest as they were older homes and would need renovations,” she said. “I (goy) a brand-new home for less than an older property, which definitely appealed.”