First homebuyer numbers continue to fall

First homebuyer numbers continue to fall

first homebuyers

First time homebuyers

The Real Estate Institute of Australia (REIA) says the Australian Bureau of Statistics (ABS) July 2014 housing finance data shows first homebuyer activity is at a record low.

Peter Bushby, president of the REIA, says the softening is becoming entrenched.

“The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, fell to 12.2 per cent compared to 13.2 per cent in June.

“This is the lowest since the series commenced in July 1991.”

Bushby says the rest of the ABS numbers show relatively flat performance for the month.

“In trend terms, the number of commitments for new dwellings purchases increased by 1.3 per cent while construction of new dwellings decreased three per cent and the purchase of established dwellings decreased by 0.1 per cent.”

Investors again showed they are a driving force in property across the nation, Bushby says.

“The value of investment housing commitments again increased by 1.2 per cent in July, following over three years of consecutive monthly increases.”

Bushby believes the fall in first homebuyers should be more worrying for policymakers.

“This figure for first homebuyers is very concerning and governments need to look at the issues impacting on this important group.

“There’s a chronic under-supply of housing, and added to this, many state and territories have abolished homebuyer grants for established dwellings which has further undermined the confidence this group needs to enter the market.”

 

Posted on Wednesday, September 10 2014 at 1:48 PM

Article supplied by: http://www.apimagazine.com.au/api-online/news/2014/09/first-homebuyer-numbers-continue-to-fall

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