The number of first home buyers has bottomed out in Australia, reaching record lows in the final months of 2013.
According to the latest ABS data the proportion of first home buyers fell to just 12.3% in November, the lowest figure since records began in July 1991, and well below the long-run average of 19.9%.
In light of the figures, REIA president Peter Bushby has called on all governments to review their support for first home buyers.
The continued fall of first home buyers is despite overall growth in total lending in response to interest rate cuts and a positive outlook for much of the country, said REIA president Peter Bushby.
Housing finance figures for November 2013 show, in trend terms, that the number of owner-occupied finance commitments rose by 0.6 per cent, following increases of 0.8 per cent in October and September. This is the lowest monthly increase, in trend terms, since January 2013.
If refinancing is excluded, in trend terms for November, the number of owner-occupied finance commitments increased by 0.7 per cent.
“Increases were recorded in New South Wales, Tasmania, Queensland and Western Australia, with Tasmania having the biggest rise, up 2.4 per cent. The Australian Capital Territory’s fall of 1.4 per cent was the country’s largest,” said Bushby.
“In trend terms, the number of commitments for the construction of new dwellings climbed 1.1 per cent and the purchase of established dwellings went up 0.7 per cent,” he said. “However the purchase of new dwellings fell by 0.6 per cent.”
The value of investment housing commitments continued to increase, with a rise of 3.0 per cent, in trend terms, in November resulting in well over two years of consecutive monthly increases.