First home buyers still active

Even if you take just a passing interest in the media coverage of the Australian property in general, and the current situation of most first home buyers in particular, the chances are you probably think that quite a few market entrants have given up on securing their first step on the property ladder until the current economic climate changes.

Given that there has been so much talk about current interest rates, (and when they might start dropping), concerns about the overall cost of living in general, and rising rents in particular, you might assume that things look bleak for market entrants right now.

However, if recent figures from the Australian Bureau of Statistics are anything to go by, you may want to think again.

The ABS publishes data each month that tracks home lending activity in Australia, and their latest figures (up to February this year), make interesting reading.

The total value of mortgage lending for first time buyers in February was over $4.9 billion, an increase over the month of 4.8 per cent in seasonally adjusted terms. Their figures confirm a clear trend, as first home buyer lending has been experiencing a steady increase in the share of owner-occupied housing finance over the past eighteen months or so, (since August 2022). In fact, lending to first home buyers has now reached 29.2 percent of all loans, comfortably above the ten year average of 24.5 percent.

Clearly, figures like these don’t provide a complete picture of market activity given that a percentage of buyers, (such as downsizers for example), are purchasing property without any finance at all. But it does show that no matter what is happening in the broader economy, there are certainly a number of determined young (and sometimes not so young) Australians who will not let anything come between them and their property ownership aspirations.

Of course, if you are currently trying to purchase your first home, or you know someone who is, never underestimate the value of experienced advice and objective guidance. If you are looking for someone to help you along that path, feel free to give me or one of my team at Brand C a call on 9807 6686.

Brandon Chuah

Director

Brand C