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Number of first-home buyers is rising THE number of first home buyers entering the national property market is at the highest point for nearly four years.The softening of the prices across Australia, and a steady interest rate, have prompted a growing number of people to buy their first property. But overall, the housing market is still down, with the amount of money borrowed during January falling a further 1.2 per cent to $18.58 billion. Of that outlay, the majority $12.08 billion - was spent on owner-occupied housing, reflecting a further weakening of investment properties. The Australian Bureau of Statistics reported there were 58,702 owner-occupied properties sold during the month, and a further 4512 new houses built. There has been a dramatic sag in the number of purchases of newly constructed properties, with sales in that field down 3.3 per cent. Economists said the results showed that while the property market remained subdued, the worst might be over. A glimmer of a second housing bubble emerged recently with property prices rising in all of the capital cities. The value of the average home loan has fluctuated across Australia. The most expensive state remains New South Wales at $247,800, but that figure is down on the previous year's. The strongest growth has been in Western Australia, at $195,300, which is up nearly 14 per cent because of the mining boom. CommSec economist Andrew Mitchell said the number of first home buyers was strongest in New South Wales and Victoria. Almost 19 per cent of all new home finance is for a first home purchase across Australia. "The proportion of first home buyers entering the market remains close to four-year highs," Mr Mitchell said. "With house prices remaining flat, especially in the south-eastern states, and wages continuing to rise, homes are becoming more affordable for first home buyers." The steady interest rate, which was left at 5.5 per cent this week, has been attributed to some of the increase. The figures show potential home buyers also seem to be shopping around looking for a mortgage. The number of loans approved by the traditional banks rose marginally - 0.4 per cent - while the share by non-bank lenders fell for the fourth month in a row. Separate research by Deutsche Bank found the regional banks and overseas-owned institutions were growing market share to the detriment of the traditional top four. Westpac's Andrew Hanlan said lending for investment properties was below the highs reached in the middle of last year. "A number of negative fundamentals continue to hang over the market," Mr Hanlan said. "Housing affordability is still stretched and rental yields are generally unattractive. "These factors. which should prevent a surge of investors back into the market point to broadly flat prices for a while vet." |
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