The number of first home buyers reached record lows in the final months of 2013.
The latest ABS data indicates the proportion of all property sales made by first home buyers fell to just 12.3% in November, the lowest figure since records began in July 1991.
The first home buyer activity was also well below the long-run average of 19.9% of all sales.
In light of the figures, REIA president Peter Bushby has called on all governments to review their support for first home buyers.
The continued fall of first home buyers is despite overall growth in mortgage related loans – a reflection of the low interest rates environment at the moment, Real Estate Institute of Australia president Peter Bushby said.
Housing finance figures for November 2013 show, in trend terms, that the number of owner-occupied finance commitments rose by 0.6%, following increases of 0.8% in October and September. This is the lowest monthly increase, in trend terms, since January 2013.
If refinancing is excluded, in trend terms for November, the number of owner-occupied finance commitments increased by 0.7%.
“Increases were recorded in New South Wales, Tasmania, Queensland and Western Australia, with Tasmania having the biggest rise, up 2.4%. The Australian Capital Territory’s fall of 1.4% was the country’s largest,” said Bushby.
“In trend terms, the number of commitments for the construction of new dwellings climbed 1.1% and the purchase of established dwellings went up 0.7%,” he said. “However the purchase of new dwellings fell by 0.6%.”
The value of investment housing commitments continued to increase, with a rise of 3% in November resulting in well over two years of consecutive monthly increases.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out