Young homebuyers back falling prices to ease housing affordability crisis
Some newer homebuyers are ready to accept lower property values if it helps others afford housing.
Alex Hogan, 41, bought a block of land in Queensland to build a family home. The property market had locked him out before.
Rising construction costs are limiting his options, and his home's expected value is falling due to property tax reforms and higher interest rates. Alex Hogan wants government to do more for affordability.
Some newer homebuyers are ready to accept the fallout if it helps others get into the market. Junior doctor Eibhlinn Cassidy, 30, knows her apartment value is falling.
This means higher loan repayments when she refinances next year. She stays calm about it because it boosts affordability for the next generation.
Property prices have fallen 3.6 per cent from their peak this year. Some analysts are forecasting falls that exceed 10 per cent.
- 41 years old
- Alex Hogan's age
- 30, junior doctor
- Eibhlinn Cassidy's age
- 3.6 percent this year
- Price fall from peak
- Falls exceeding 10 percent
- Analyst forecasts
Why it mattersIf prices keep falling, first-home buyers could finally enter the market. However, recent owners face refinancing stress as values slide.
AustraliaAustralian housing affordability could improve if price falls continue, but newer buyers face the risk of higher repayments if rates stay high when they refinance.
✓ Claims checked against the source. checked 12 d ago
