One of the most talked-about aspects of the current property market is the challenge faced by first home buyers. This is no surprise given the impact of elevated home loan interest rates, sustained rises in property values and the added cost of increased residential rents.
Having said that, it’s important to keep in mind that, as we pointed out in A POST EARLIER THIS YEAR, the first home market has changed in recent years. What’s more, some recent figures from the Australian Bureau of Statistics show that market entrants seems to be a far more resilient group than some people might have assumed.
The ABS publishes regular updates on home lending trends in Australia, and their latest figures for February show that the value of mortgage lending for first home buyers is actually increasing, not declining.
Lending to first home buyers in February hit $4.9 billion which was an increase of 4.8 per cent in seasonally adjusted terms. In fact, the ABS say that first home buyer lending as a percentage of all owner-occupied lending has been trending upwards since August 2022. The latest numbers indicate that lending to market entrants has now reached 29.2 percent of all loans, which is clearly above Australia’s ten year average.
These figures certainly provide some interesting insights into the underlying activity among first time homebuyers, however in examining them it’s important to remember that they are not representative of the entire market.
This is because there are a growing number of buyers who are purchasing property without borrowing funds at all, but they do show that a fair number of young Australians, (and sometimes not so young), are still very keen to secure their first rung on the property ladder.
Of course, our team at Ian Reid Buyer and Vendor Advocates take great pride in having assisted countless first home buyers to achieve their property goals over the years, as well as assisting numerous homeowners to achieve great results when selling properties with appeal for market entrants as well.
So if you would like some experienced and objective advice in this area, don’t hesitate to give us a call on 9430 0000.
You’ll also find lots of helpful tips for homebuyers in our free booklet, “WINNING BUYER STRATEGIES” so be sure to download a copy while you’re here.
04/30/2024 
