realestatebusiness logo
Subscribe to our newsletter SIGN UP

Finance commitments down; investor interest up

11 September 2009 Reporter

Data from the Australian Bureau of Statistics has revealed a slowdown in the rate of growth of finance commitments.

Total finance commitments rose 0.5 per cent in July, the lowest growth since August 2008.

“This figure reflects a decline in first home buyer activity, which decreased from a high of 27.1 per cent to 25.2 per cent,” Real Estate Institute of Australia chief executive officer Neil Fisher said.

Despite remaining well above the long term average of 20.1 per cent, Mr Fisher said the decline is an indicator of what can be expected between now and the end of the year as the First Home Owner’s Grant boost is phased out.

“The gap in the market left by first home buyers is already being taken up by increased investment interest,” he said.

“The value of investment housing commitments was up by 1 per cent in value terms. This is the sixth consecutive month that purchases of dwellings for investment have increased.”

Finance commitments down; investor interest up
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Where is the biggest threat to agents in 2019?

3rd party lead generation companies
DIY models discounting sales commission
Prop-tech firms cutting out the agent value proposition
A yet unidentified proper disruptor – like Uber or Airbnb
None of the above. There is no threat.
Do you have an industry update?
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.