Grant Holman from Inhouse Real Estate Eden said the announcement from both sides of government to underwrite home loans with only a five per cent deposit was a bit of a "watch this space".

"At this point in time I am not sure what the impact for first home buyers around Eden will be, I'd like to see more details," he said.

Mr Holman said although the local real estate market has been positive over recent years, things continue to be difficult for first home buyers.

"Opportunities for first home buyers are trickier now than they were two years ago," he said.

"We experienced a price rise and although interest rates decreased, that doesn't make it any easier to get a deposit together for a $480,000 house."

Mr Holman said the average price of housing in and around Eden was around the $450,000 mark.

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A local prospective first home buyer who preferred not to be named, regularly scours the internet for possible opportunities. They said over the last couple of years the prospect of entering the market has become dismal.

"The idea of owning our own home is becoming further out of reach. Properties priced at $400,000 are pitched as opportunities for first home buyers - it's basically unachievable."

Given the current rental prices in the Bega Valley, they said making regular mortgage payments isn't the problem. It was coming up with the initial deposit for houses at such high prices.

"When you are living with a small family on a single income it's impossible to come up with a deposit that will get you in the front door.

"Having the assets behind you to get loan approval for a single income family is also a big problem."

They said by continuing to search for the dream of owning their own home they were probably realistically just tormenting themselves.