Has the first home buyer crisis been exaggerated?

Has the first home buyer crisis been exaggerated?

10 February 2015 by Staff Reporter 0 comments

The Australian Bureau of Statistics has admitted a 26 per cent error in its first home buyer statistics.

A new reporting method has revealed there are more first home buyers in the market than previously thought.

The latest housing finance figures, for November 2014, originally claimed there were 6,061 first home buyer loan commitments.

However, the new methodology has seen that figure updated to 7,627, an increase of 26 per cent.

There has been much talk in recent months of a first home buyer crisis, with their share of property purchases reportedly at an historic low.

ABS regional director Jacky Hodges said it was initially assumed that the reduction in first home buyer numbers over the last two years was due to reduced affordability.

“However, subsequent analysis and follow-up with lenders has confirmed that the drop was partly due to under-reporting by some lenders,” she said.

An ABS investigation found that some lenders were failing to classify borrowers as first home buyers if they did not receive government grants.

The ABS is working with the prudential banking regulator, APRA, to ensure all loans to first home buyers are recorded in the future.

In the meantime, the ABS will adjust first home buyer data for this under-reporting using estimates based on data provided by lenders that reported correctly.

[Related: REIA calls for first home owner grant reform]

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

In this episode of Secrets of the Top 100 Agents, host Tim Neary is joined again by William Phillips to discuss the real estate database and...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?