The average time to save for a house deposit now has increased, as the values continue to rise more and more households are finding it harder to put forth a 20% for purchasing a home. According to a report by CoreLogic, the average household will take 8.6 years to save a 20% deposit assuming they can put aside 15% of their gross annual income (see chart below).
As incomes are not rising as fast as property values, housing affordability is climbing more and more out of reach of many buyers. This will slow buyer demand for those looking to enter the market.
In the four weeks leading up to the 18th of April, CoreLogic reported a record increase in properties listed for sale since 2016 sitting at 27,470 newly advertised properties. Although, this is still 17.5% below the 5-year average stock levels. This may further soften the current heat in the market and the balance of buyers vs sellers may level out some more.
My feeling is that although the markets are softening in capital cities and particularly with the likes of Sydney and Melbourne, the trend in Queensland and at home here on the Sunshine Coast will continue for the remainder of the year will continue to see a shortage of property availability as many people flock to the Sunshine State and many locals choosing not to sell with the increased uncertainty that they will find a property to buy.