Mortgage Payments Eating Up 50% of Australian Incomes: Key Insights for Buyers and Sellers
According to a recent report from Domain, the average Australian mortgage now takes up almost 50% of a household's income. This has placed a significant strain on homeowners, especially in areas like New South Wales, where mortgage repayments amount to nearly 58% of income. Rising interest rates and high property prices continue to push affordability to its limits, marking one of the lowest points for housing affordability in decades (The Property Tribune).
Challenges for Buyers
For first-home buyers, the current market conditions pose a substantial challenge. With mortgage stress becoming more common, it’s crucial for buyers to carefully consider their financial capacity. However, there’s a silver lining. Domain’s Chief of Research and Economics, Dr. Nicola Powell, notes that wage growth in certain sectors could help offset some of the rising costs. Buyers who act before further interest rate cuts might benefit from better deals and avoid increased competition later (The Property Tribune).
Sellers: Now Could Be the Time
For those considering selling, this could be a great time to capitalise on strong demand. With buyers keen to secure properties before the next round of potential interest rate adjustments, properties are continuing to sell at competitive prices. If you have been contemplating selling, the current market conditions present an opportune moment.
The property market is constantly shifting, and staying on top of the latest trends is crucial for both buyers and sellers. Making informed decisions in this evolving landscape can significantly impact your next steps.
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