First home buyers back in town
Data from one of Australia’s largest brokerages shows first home buyers are starting to become more active in the market.
According to Loan Market corporate spokesperson Paul Smith, 35 per cent of the brokerage’s enquiries in June came from first home buyers – 10 per cent more than May.
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“We have gone eight months without an interest rate rise and this has not only given a much needed reprieve to households dealing with increased costs of living but has encouraged those looking to purchase their first home,” he said.
Mr Smith said while first home buyer enquiries were still 10 per cent down on June 2010 figures, interest rate stability had lifted consumer confidence and the increased activity was a welcome change after months of challenging market conditions.
“It’s particularly pleasing to see an increase in first time buyers as this part of the market has been dormant for much of the past 12 months,” he said.
“The disasters in Queensland and Victoria, housing affordability issues throughout the country and the continually soft retail numbers have all added to the pressures this consumer segment has faced.
“The large scale belief remains that housing affordability and cost of living pressures are the main deterrent to first home buyers fully entering the market.
“But we’re finally starting to see signs of optimism that will ease these concerns.
“This optimism is boosted by the RBA leaving the cash rate at 4.75 per cent, the Australian Bureau of Statistics reporting a rise in full-time employment and the weaker property market.”
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