Home loan activity has fallen since earlier in the year, but Australian Bureau of Statistics’ breakdown of Property Buyers shows that first-home buyers have held up better than that of other buyer groups.
Between April, when national property prices peaked, and August, the most recent month for which we have data, total home loan commitments fell 13.9%, according to the Australian Bureau of Statistics.
However, the decline varied between different buyer groups:
- Investors down 20.1%
- Subsequent home buyers (owner-occupiers) down 10.8%
- First home buyers (owner-occupiers) down 9.9%
CoreLogic’s head of residential research, Eliza Owen, who analyzed downturns since 2004, found first home buyer demand for finance during downturns has traditionally been resilient, with smaller falls in demand compared to the other two groups, and sometimes even increases.
Ms Owen said there were two reasons for this:
- Governments introduced first home buyer incentives during some of these downturns
- Price falls made it easier for first home buyers to save a deposit and enter the market
With first-home buyers showing resiliency on the bureau’s breakdown of property buyers which would probably be the case for a long time, this may be the best opportunity for you to buy your own property and take advantage of the government grants for first home buyers.
To find out if you are eligble as a first home buyer, please contact us in order to discuss your situation, goals and objectives.