First home buyers crash in New South Wales

NSW first home buyer activity continues to fall with current levels the lowest on record for the state market.Sydney map

Latest ABS data reveals that just 1284 loans were approved for NSW first home buyers over September which is the smallest September total recorded in the series since the all-time low recorded over September 1991.

First home buyer loans in NSW accounted for a record low 4.5 percent of all lending approved for housing purchases over September.

This is well below the long-term market share for this group of 13.0 percent and is clearly the lowest proportion of all the state markets – well below the next lowest state South Australia with a 9.7 percent loan market share.

fhbsep16

Although activity levels are low and falling, the average loan approved for a first home buyer in NSW increased by 2.9 percent to $376,700 over the month and was clearly the highest of all the states with next highest Victoria at $325,100.

First home buyer activity in NSW is set to remain at historically low levels, particularly with home prices rising sharply in the Sydney market over recent months.

The recent surge in investor activity is also clearly a factor in sidelining NSW first home buyers and will continue to contribute significantly to prices growth.



Want more of this type of information?


Andrew Wilson

About

Dr Andrew Wilson is Australia’s leading housing market expert. As senior economist for Fairfax-owned Domain Group, Dr Wilson is one of the nation’s most respected real estate analysts and Australia’s highest profile housing market commentator. Visit his blog at Domain


'First home buyers crash in New South Wales' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

0
0

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!