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