First home buyers are taking advantage of the low interest rates to get their foot on the property ladder with a recent report revealing over 40 per cent of the market is made up of buyers purchasing their first home.
For the first time in a decade, first home buyers are dominating Australia’s property market with data from the Real Estate Institute of Australia (REIA) showing the largest quarterly increase in first home owners since 2010.
REIA President, Adrian Kelly said that a cocktail of favourable market conditions have led to the surge in new buyer confidence and that it bodes well for the country’s economy.
“Market entry has experienced its largest year on year increase since 2009 and largest quarterly increase since 2010,” he said.
With a September quarter increase of 36.1%, first home buyers now make up 40.8% of the owner- occupied dwelling market.Real Estate Institue of Australia President – Adrian Kelly
“This is particularly good news given the large challenges faced by tenants at the outset of the COVID-19 pandemic,” said Mr Kelly.
Despite the historically low interest rates being handed down by the banks, Mr Kelly believes even more can be done to further stimulate the property market.
“Banks could do more to further improve affordability by passing on in full interest cuts and help even more Australian’s buy homes,” he said.
The Housing Affordability Report (HAR) also looks at the average incomes and rental affordability across Australia with slight quarterly changes recorded.
“HAR shows us that Australian families experienced a small income increase of 0.5 % while the average loan repayment decreased by 2.5 %,” said Mr Kelly.
“For renters, affordability declined in the September quarter and over the past year with the proportion of income required to meet rent payments increasing by 0.4 percentage points to 23.7%. This is mainly attributed to the increase in rents in a number of capital cities.”Real Estate Institue of Australia President – Adrian Kelly