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It’s Officially First Home Buyers’ Market

22 Jan 2019

Proportion of all buyers, the share of first-home buyers is at 6-year highs.

In November, almost 10,500 first-home buyers took out a home loan, just off the highest number in almost nine years. And as a proportion of all buyers, the share of first-home buyers is at 6-year highs.

The proportion of first-time buyers in the home loan market rose from +18.1% in October to a 6-year high of +18.3% in November (decade-average +17.7%).

Clearly these buyers are celebrating the greater choice of properties on the market, more attractive prices and super-low interest rates.

Over the year to November, almost $238 billion in loans were taken up by owner-occupiers to buy property, just below the all-time high of $240 billion in the year to August. While investors have retreated from the market on the belief that price gains will be harder to achieve, budding home owners are still out in force. 

THE NUMBERS

The number of loans by home owners (owner-occupiers) - 0.9%

Loans by owner-occupiers for the construction of homes -2%

Loans to buy newly-erected dwellings +3.4%

Loans for the purchase of established dwellings -0.6%

The number of refinancing transactions -1.1%

Changes in home loans across the country:

ACT -0.6%

NSW -1.5%

Victoria -0.7%

Tasmania -9.2%

Queensland -0.7%

South Australia -0.8%

Western Australia -2.4%

Northern Territory -22.4%

 

WHAT ARE THE IMPLICATIONS FOR INTEREST RATES AND INVESTORS? 

Builders and real estate agents will face differing prospects depending on their location. At present five of the eight states and territories are showing monthly gains in home loans in trend terms. NSW, Victoria and Queensland are in the downturn phase of the cycle. 

CommSec expects no change in official interest rates until late in 2019 at the earliest.

 

*source Property Observer

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