RISING PROPERTY PRICES LEADING TO LARGER MORTGAGES

Owner-occupier first home buyers are taking out loans averaging $540,294 when entering the market.

 That's based on money.com.au analysis of the latest Australian Bureau of Statistics mortgage data.

Meanwhile, refinancers are borrowing, on average, $587,569 if they're owner-occupiers and $639,433 if they're investors.

 All those figures have increased over the past year.

“One of the extraordinary phenomena of the current rate-hiking cycle is that despite higher interest rates, we've also seen property values not only recover from a short, sharp decline where the market bottomed out in the beginning of 2023, but values have actually managed to climb back to new record highs,” CoreLogic’s Head of Research, Eliza Owen, said.

“Part of the reason that home values have continued to increase in a high interest rate environment is because of a surge and an acute level of net overseas migration, changes in household formation where there are fewer people living per dwelling and also the constraints that exist in the construction sector.”

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