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.”