The first homebuyer market remains at historic lows, even with low interest rates on offer.
First home buyers currently make up only about 12 per cent of new loans financed according to figures from the Australian Bureau of Statistics.
That figure has hovered around there since September last year, reaching its lowest level of 12.3 per cent in November and clawing back a little traction in December at 12.7 per cent.
Nationally the glory days (of glory month) for first home buyers was in April 2009 when they made up a third of buyers.
The latest data, for the month of December, revealed Victoria had the largest number of first home buyers in December, with 1740 taking the plunge.
The average size loan in that state was $295,500.
First home buyers in the Northern Territory, of which there were only 57 in December took out the largest average loans in the country of $365,900.
Buyers in Tasmania were getting into the market for a lot less with the average size of a loan $218,900.
John Edwards of Residex and analyst for Onthehouse.com.au said investors were crowding first home buyers out of the market.
He said the value of loans to investors increased by 2.3 per cent in the final quarter of 2013.
“Investors are currently taking advantage of low interest rates, particularly older generations who are now investing in property through their self-managed super funds,’’ he said.
“As a result younger buyers and those looking to buy a first home are finding it increasingly difficult to afford to purchase property, especially in Sydney and Melbourne and are therefore having to rent.’’
WHERE THE FIRST HOME BUYERS ARE
Victoria — 1740
Western Australia — 1511
New South Wales — 1321
Queensland — 1166
South Australia — 649
Tasmania — 127
ACT — 89
Northern Territory — 57
Source: ABS all figures are Dec. 2013
Original article published at www.news.com.au by Michelle Hele, News Limited Network 26/2/14