First home buyers

First home buyers are racing to buy — but rising prices put home ownership ‘further out of reach’

PHOTO: First home buyer Scott Ryan after winning his first property at auction.

First home buyers are helping prop up the property market during a pandemic — but a feedback loop is emerging where rising prices are simultaneously making it harder than ever for some to buy their first home.

Despite initial predictions that property prices would dive, the exact opposite is happening one year on from the emergence of COVID-19.

Analysts say this is happening due to a combination of record-low mortgage rates, a strong economic recovery, and buyer demand being strong against relatively low levels of stock.

Even sharp drops in inner-city high-rise apartments in Sydney and Melbourne appear to have stabilised.

Melbourne woman Alycia Gawthorne has been saving to buy a property since she got her first job at 15 years of age.