First Home Buyers Down but Not Out – Yet

Although first home buyer activity has waned recently, levels remain strong – but the outlook nonetheless is problematic for realising the Great Australian Dream.

Latest ABS data reveals that national lending seasonally adjusted for first home buyers fell by 3.3% over February – the first monthly decline since May 2020 at the height of the autumn coronavirus shutdown.

Despite the monthly fall, 16,167 first home buyer loans were approved over the month, the second highest result since June 2009.

Lending to first home buyers has surged by 68.3% over the first two months of this year compared to the same period last year.

The February decline in first home buyer lending, largely reflected a sharp fall in VIC where activity was down by 5.2% with all other states reporting monthly increases.

VIC however remained the top performer for first home buyer loans with 4,142 approved over the month, followed by QLD 3,078, NSW 2,747, WA 2,362 and SA 972.

Aw1

Aw2

NSW however remains clearly the most expensive state for first home buyers with an average loan over February of $497,925 followed by VIC $442,805, QLD $379,597, WA $372,947 and SA $335,802.

Aw3

First home buyer activity remains at the highest levels since the record-breaking period in 2009 courtesy of low interest rates, a reviving economy and various government stimulus policies direct to the group.

With home prices now rising sharply in booming housing markets and government policy initiatives expired or diminishing, the likelihood of continuing strong first home buyer activity is quickly declining.

icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Dr. Andrew Wilson

About

Dr Andrew Wilson, Chief Economist of www.MyHousingMarket.com.au is widely regarded as Australia’s leading property economist.


'First Home Buyers Down but Not Out – Yet' 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

*


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts