Affordable markets are now suffering the biggest drop in house prices amid fears more recent first-homebuyers will be trapped owing their bank more than their home is worth if they lost their job and were forced to sell.<\/p>\n
New data from real estate group Ray White shows suburbs with median house prices within the Federal Government\u2019s 5 per cent deposit scheme cap had some of the biggest falls in September.<\/p>\n
Ipswich and Logan near Brisbane, Mandurah in Perth\u2019s outer south and areas of western Sydney and the Central Coast are among the worst-affected areas, as some of Australia\u2019s richest postcodes surprisingly saw price rises.<\/p>\n
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By continuing you agree to our Terms<\/a> and Privacy Policy<\/a>.<\/p>\n Ray White chief economist Nerida Conisbee said first-homebuyers in these areas were more likely to be in negative equity or trapped with debt that was bigger than the value of their home, as prices kept on falling.<\/p>\n \u201cPeople build wealth in their home, they rely on a home increasing in value to upgrade and if we do see very limited price growth in these affordable markets, it will become very hard for them to upgrade without taking quite a bigger chunk of debt,\u201d she told The Nightly.<\/p>\n \u201cDefinitely, over the next six months with affordable markets falling the quickest, it is likely to get worse because of the outsized influence of the Budget on the affordable market.\u201d<\/p>\n Labor\u2019s Budget stopped investor landlords from being able to negatively gear established homes, exchanged after May 12, from July 1, next year, which is affecting those affordable markets with more first-homebuyers.<\/p>\n \u201cWe do consider that the more affordable end of the market will remain weaker for longer because of very low levels of investor activity so they may be in negative equity for quite some time,\u201d Ms Conisbee said.<\/p>\n The Reserve Bank\u2019s four rate rises in February, March, May and September \u2014 taking the cash rate to a 15-year high of 4.6 per cent \u2014 are also taking momentum out of the lower end of the housing market.<\/p>\n Another rate rise, which would take the cash rate to an 18-year high of 4.85 per cent, could potentially cause heartache for recent borrowers should it cause unemployment to climb from September\u2019s five-year high level of 4.7 per cent to a level closer to 5 per cent.<\/p>\n \u201cIf you lose your job, that\u2019s a particularly bad situation because not only do you have a rising debt bill, you\u2019ve also got no income and that could lead to a particularly challenging situation,\u201d she said.<\/p>\n Brisbane\u2019s outer suburbs, within the $1 million price cap, are doing particularly bad with prices in the Ipswich region slipping by 1.4 per cent last month to $850,000.<\/p>\n The Logan-Beaudesert region had a 1.4 per cent slide to $910,000 as the Moreton Bay region in city\u2019s north had a 1.3 per cent drop to $960,000, data from Ray White\u2019s analytics firm Neoval showed.<\/p>\n In Perth, where the price cap is $850,000, Mandurah prices fell by 1.3 per cent to $810,000.<\/p>\n Parts of Greater Sydney, well below the $1.5m price cap, also suffered price falls in September.<\/p>\n Central Coast house prices fell by 0.5 per cent to $970,000, while Blacktown in the western suburbs suffered a 0.4 per cent drop to $1.15m.<\/p>\n Nearby Parramatta had a 0.3 per cent drop to $1.43m.<\/p>\n But despite the RBA\u2019s aggressive rate hikes and no scope for first-homebuyers to get in with a 5 per cent deposit, Sydney\u2019s eastern suburbs had a 0.2 per cent gain to a very expensive $3.6m.<\/p>\n Bargain hunters are stepping in, following an 8.5 per cent annual fall in Australia\u2019s most expensive property market.<\/p>\n \u201cYou\u2019re buying into markets that don\u2019t normally fall that much \u2014 these are highly desirable markets and as a result are seeing much better conditions,\u201d Ms Conisbee said.<\/p>\n The affordable markets with monthly falls also had strong annual gains with Mandurah prices rising by 6.4 per cent, ahead of Ipswich on 4.4 per cent, Logan-Beaudesert on 3.8 per cent and Moreton Bay north on 3.1 per cent.<\/p>\n But in Sydney during the past year, Parramatta has plunged by 6.8 per cent, with Blacktown slipping by 4.8 per cent and the Central Coast falling by 2 per cent.<\/p>\n For the first time in 12 weeks, Sydney\u2019s preliminary clearance rate fell below 50 per cent, new Cotality weekend data showed.<\/p>\n The 48.2 per cent result was slightly above June\u2019s low of 47.3 per cent.<\/p>\n Brisbane, which doesn\u2019t traditionally have auctions, had by far the lowest preliminary clearance rate of any capital city, at 25.2 per cent, marking city\u2019s fourth-lowest preliminary result so far this year.<\/p>\n","protected":false},"excerpt":{"rendered":"Affordable markets are now suffering the biggest drop in house prices amid fears more recent first-homebuyers will 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