First Home Buyer numbers at Lowest Level in nearly a Decade
The latest figures from the Australian Bureau of Statistics (ABS) have revealed that the number of first home buyers entering the market has dropped to their lowest rates in almost ten years, and the record-low interest rates have so far failed to encourage them.
The ABS figures showed that the percentage of home loans secured for first-home buyers decreased to 14.2% in March, down 0.2% from February. It is now at its lowest point since May 2004.
Michelle Hutchison, spokeswoman for RateCity.com.au, commented that first time buyers were finding it harder to afford entering the property market.
Hutchison said that loan sizes have not increased substantially and interest rates are low, making it easier to pay off the mortgage, but that there was still a wall for first time buyers to get into the market to start with. According to Mortgage and Finance Association of Australia chief executive, Phil Naylor, the scaling back of first home owner grant incentives plus the looming election may be the reason that first home buyers are holding back and waiting to see the direction of the economy.