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It may be getting harder for Australians to buy their first home, according to the latest figures from the September quarter.
The Real Estate Institute of Australia’s (REIA) Housing Affordability Report found that the number of first home buyers fell significantly in all states and territories in the three months to September. South Australia had the largest fall of 21.6 per cent, while the ACT recorded the least amount of change, with just a 0.7 per cent decrease in first-time buyer activity.
That brings the total of first home buyers to 37,782 in the last quarter, a decrease of 12.6 per cent over the period. New buyers now make up 35 per cent of owner-occupier dwelling commitments.
Looked at over the course of the year, however, the number of first-time homeowners has risen by 1 per cent in 12 months, with the demographic increasing activity in NSW, Victoria, Western Australia, and the ACT, while dropping in Queensland, South Australia, Tasmania and the Northern Territory.
REIA president Adrian Kelly said the figures showed the need for programs like the First Home Loan Deposit Scheme and the First Home Super Saver Program to be expanded.
“As we attempt to start adjusting to the new COVID normal, buyer and investor interest shows little signs of being satiated,” Mr Kelly remarked.
“This competition means the average loan size to first home buyers has increased to $459,256. This was an increase of 2 per cent over the quarter and an increase of 14 per cent over the past 12 months.”
Across the country, some first home buyers felt the impact of rising prices more than others. Loans for first home buyers shot up 21.3 per cent in Tasmania over the year, while the Northern Territory got off easiest with just a 5.8 per cent rise.
Mr Kelly said that with the situation differing from state to state, it was clear that the complex issue of housing affordability required “bipartisan support, commitment and leadership from both state and federal governments to ensure the right balance of regulation, supply and policy levers”.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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