15 Aug First Home Buyer Participation Hits 6-Year High
“The First Home Buyer share of owner occupier housing loans increased again during June 2018 and is now at its highest since late 2012,” stated HIA Senior Economist, Shane Garrett.
Today’s ABS housing finance figures for June 2018 indicate that First Home Buyers accounted for 18.1 per cent of owner occupier home loans during the month.
“Over the past 12 months, the volume of first home buyer owner-occupier loans has increased by 11.4 per cent. There are a few reasons behind this welcome trend. Several state governments, including NSW and Victoria, have enhanced their incentives giving the first home buyer segment a new lease of life,” added Mr Garrett.
“In recent years, record numbers of newly built apartments have also come on stream. In terms of design and price point, many of these are particularly suited to first home buyers and have made the purchase of their first home possible.
“On balance, the slowdown in dwelling price growth over the past year and ongoing low interest rates have also been favourable for those seeking to access the market for the first time.
“In contrast, the value of housing investor loans hit a five-year low during June and has declined by 22.4 per cent since its peak at the beginning of last year.
“Investment participation in the housing market plays a key role in delivering new housing supply and is vital to the healthy functioning of rental markets right around Australia.
“Recent policy and regulatory changes have made it more difficult for investors to participate in the housing market. With our population hitting 25 million, any obstacles to housing supply must be avoided so that the industry can meet our future housing needs,” concluded Shane Garrett.
First Home Buyers in Australia
For further information please contact:
Shane Garrett, Senior Economist – 0450 783 603
Geordan Murray, Senior Economist – 0438 103 651
or visit hia.com.au.