The number of young first home buyers entering the property market is nosediving, an online property agency has warned.
According to data from iBuyNew the number of first home buyers aged 25-35 years fell from 55% of the sector at the end of the 2015 fiscal year to 40% by 30 June 2016.
These findings by the online property agency, which specialises in off-the-plan properties, follow this week’s latest housing finance figures from the Australian Bureau of Statistics which found the percentage of owner-occupier loans to first time buyers was at a 12-year low.
iBuyNew CEO Mark Mendel said a combination of rising property prices and negative media about the real estate and home finance markets had helped to “scare off” young first home buyers.
“Despite record low interest rates, the first time buyer sector has collapsed,” he said.
“Even though property is very affordable with interest rates set to stay at historical lows, young Australians have been put off entering the market.
“It’s an issue for state and federal governments with the current schemes to entice first home buyers out of the rental market either out of date or ineffective.”
The ABS this week found the percentage of owner-occupier loans to first home buyers fell to 13.9% in May, 2016, down from 14.4% in April. This is the lowest level since April 2004. First time investors are not included in the ABS data.
But with the federal election out of the way and a result now clear, Mendel said there may be more confidence among young first time buyers during the second half of 2016.
“A recent survey we conducted found while the majority of people weren’t deterred from purchasing property by the election, a lot of people wanted to await the outcome,” he said.