The number of home loans given to first-home buyers, as a percentage of total owner-occupied loans, rose to 18 per cent in November 2017 from 17.6 per cent in the previous month, according to new data from the Australian Bureau of Statistics.

The last time figures were above 18 per cent was 2012, and prior to that 2008, when first home buyers made up more than 30 per cent of new mortgages. 

The rise in first home buyers has been attributed to a softer national market, low interest rates and better buying conditions. 

Currently, the median price for three-bedroom home in Nowra is $455,000, which has fallen slightly since September 2018, from $459,000, making it a more attractive time to buy. 

Housing prices have also fallen steadily over the past six months. In August 2018, the average price for a home was $599,5000, by January 2018, that median had fallen to $572,500. 

The good news for first home buyers is that new housing loans and prices are down for the first time in years. First home buyers are now competing with fewer investors and require lower deposits.

READ MORE: Take a look inside the South Coast’s most expensive properties sold in 2018

As more first home buyers enter the market, experts have offered some advice on the mistakes to avoid when purchasing for the first time. 

According to Canstar, Australians under the age of 35 are saving less than 10 per cent of their after-tax income and 17 per cent are saving nothing at all.

“Anyone that has a goal of buying this year should be getting their finances in order,” Canstar group executive, financial services, Steve Mickenbecker said.

“To reach a 20 per cent deposit plus additional purchase costs will take committing to a savings plan. First time buyers should also be aware of the mistakes easily made that could impact their ability to buy, loan application or cost them more in the long run.”

Mr Mickenbecker said before anything else, first home buyers needed to be aware of their budget to ensure they are aware of what they can afford before getting hung up on a dream home beyond their means.

READ MORE: How does your weekly rent compare to the median cost in your town?

Secondly, Mr Mickenbecker said it was important to save up for a 20 deposit, as falling short of this could prove costly. 

“While not all lenders require a 20 per cent deposit, falling short of this can be costly with buyers required to pay Lenders Mortgage Insurance (LMI),” he said. 

“LMI is an insurance policy that protects the lender from financial loss in the event that you can’t afford your home loan repayments and the sale of the property doesn’t cover the outstanding loan amount.” 

A lot of first home buyers have fallen into the trap of using all their savings for a deposit. While having the largest possible deposit is great, Mr Mickenbecker said home buyers should be mindful of additional buying expenses and unexpected costs arising.

“Taking into account maintenance and other living and moving costs is often overlooked, delaying repairs and creating financial stress,” he said. 

It’s also important to do your research to find out if you may be eligible for any grants, said Mr Mickenbecker. 

“First-time buyers don’t have to go it alone. The First Home Owners Grant is designed to encourage and assist home ownership across the nation, and for eligible Aussies it can contribute to a great start to life as a property owner,” he said. 

“In most cases the First Home Owners Grant is only for those buying or building a new house or unit, although in some places it can be used for established homes as well.”