First home buyer activity has slumped to its lowest level in six years, new research has found.
According to recent statistics from RP Data, first home buyer activity is currently 17 per cent below long-term average levels.
“It’s clear that in 2009 the surge in first home buyers was due to low interest rates, improving affordability because of property value falls during 2008, and the First Home Owners’ Grant Boost which actually pulled forward the majority of first home buyer demand for 2010 into 2009,” RP Data research analyst Cameron Kusher said.
In 2010, the volume of first home buyers was 50 per cent lower than it was during 2009. Between 1993 and 2010, on average there were 116,284 first home buyer finance commitments annually.
Interestingly, over the last 10 years first home buyers have become much more active at times when the market has been recording superior levels of value growth.
“Savvy first home buyers should probably be looking to become active in the market place during the quieter years as market conditions tend to be much more in favour of buyers rather than sellers. These conditions provide first home buyers with more time to make a decision and secure the best possible price for their new home,” Mr Kusher said.