Amidst the housing downturn in Australia, first home buyers have been noted to be getting back in the property market. Latest data from the ABS Housing Finance report showed that first home buyers have availed of new housing loans in more than six years.
Specifically, 18.3 percent of owner-occupier loans were taken out in November 2018, an increase of 0.2 percent from the October figure. This figure is said to be the highest share of new housing loans for first home buyers since October 2012.
RateCity.com.au also confirmed that first home buyers are getting back despite a slowing housing market. Research director Sally Tindall noted that these buyers are taking their time and waiting for the right opportunity to purchase a property.
Banks, for their part, are offering several incentives to attract more first home buyers. Some are offering fee waivers, rebates, grants and cashback. Many, however, remain strict in their requirements such as the deposit and a good track record of frugal spending.
In another development, the value of home lending dropped 2.5 percent in November last year. Similarly, owner-occupier housing dropped in value by 1.4 percent based on seasonally adjusted figures.
Late last year, a survey by home loan lender ME showed that house buyers notably in Melbourne and Sydney who bought a property in the past three years were most worried about the price falls. First home buyers were also worried about housing becoming too costly. Some 77 percent of them said that housing is getting out of reach. The same survey showed that 58 percent of homeowners and 64 percent of first home buyers were having a “wait and see” attitude postponing their decision to buy a property at a later time.
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By Wendy Chamberlain
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.