Ending Grant Pushes Forward First Home Buyers
A decline in the mortgage broker loan market proves that the ending of generous first-home buyer schemes in four states and territories artificially pulled forward demand. It’s likely, therefore, that demand will decline in the first-home buyer market in the next few months. First-home buyers made up 29 per cent of the loan market enquiries in July, down from 35% in June, a 19 per cent decline.
“It’s no surprise that this drop off in first-home buyer activity has coincided with a number of incentive schemes for this segment of the market being wound up by some state and territory governments at the end of the 2011-12 financial year,” said Loan Market spokesperson Paul Smith. “But although we have seen a modest drop off in enquiries from first-time buyers, there has been an increase in people looking to upgrade in the current market.”