They’re back! First home buyers jump back in to the market
FIRST home buyers have made a bold return to the property market after months on the sidelines, with Queensland experiencing the biggest increase.
The latest report from the Real Estate Institute of Australia and Adelaide Bank reveals the number of loans to first time buyers increased by 14 per cent during the June quarter, with increases in all states and territories except Tasmania.
That’s despite government grants for first time buyers in some states not coming into effect until July 1.
Queensland welcomed more first-home buyers into the market than any time in the past year, with the number of loans increasing by nearly 12 per cent in the June quarter and almost 20 per cent compared to the same time last year.
The average loan size for first home buyers in the state increased 1.5 per cent during the quarter to $296,033.
Real Estate Institute of Queensland spokesperson Felicity Moore said that confirmed the Queensland market’s viability and good value proposition.
“It’s also a reflection of the impact of the Government’s first-home buyer grant boost of an additional $5000 to a total of $20,000,” she said.
Of all buyers in the market for their first home in the three months to June 30, more than a quarter were from Queensland.
But Victoria tops the charts as the state with the largest number of first home buyers, followed closely by Queensland.
The June quarter edition of the Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report shows a slight decline in housing affordability nationally, with the proportion of median family income required to meet average loan repayments increasing by 1 percentage point to 31.4 per cent — just above the 30 per cent threshold usually used to define mortgage stress.
In Queensland, the proportion of income required to meet home loan repayments increased by half a per cent during the quarter to 27.2 per cent.
That’s up a modest 0.2 per cent on the same period a year ago.
The average monthly loan repayment in Queensland increased to $1,948, from $1,933 a year earlier.
And the median weekly family income in the state is $1,651, according to the report.
But Adelaide Bank head of business development Darren Kasehagen said that shouldn’t overshadow the good news that first home buyers had made a comeback.
Aerial view of residential housing in Queensland. Picture: AAP/Dave Hunt.
Queensland, Western Australia, Australian Capital Territory and the Northern Territory all experienced an increase in first home buyers during the June quarter, with the territories recording growth of 49.6 per cent and 40 per cent respectively.
“The average loan size to first home buyers increased by 1.2 per cent over the June quarter and 0.6 per cent over twelve months to $365,600 with the average loan size to first home buyers decreasing in South Australia, Tasmania and the Australian Capital Territory over the quarter,” Mr Kasehagen said.
“Year on year, the average loan size to first home buyers increased in New South Wales, Victoria, Queensland and the Northern Territory.”
Source: Realestate.com.au/news
