First home figures continue to climb

So it was interesting to see the latest housing finance data from the Australian Bureau of Statistics which was released this week. These figures have confirmed our perceptions, as they indicate that first home buyers are occupying an increasing share of the overall property market.

The figures show that the proportion of loans to first home buyers, when compared with the overall owner-occupied housing finance market, increased to 18.0 per cent in November 2017. This was the highest proportion since October 2012. Importantly, this percentage was also above the decade-long average of 17.9 per cent.

For those readers who love raw numbers, the total number of home loans to first-home buyers in November was 11,091. This was the highest number recorded since December 2009, which was the period that the government began cutting first-home-buyer incentives as part of its response to the global financial crisis.

This increase in activity by first home buyers has certainly had an impact on the property market in the City of Darebin, particularly for those selling apartments and units. Indeed, our sale this week of a 2-bedroom apartment in the Centum complex (pictured) on Plenty Road was a prime example. In past years you would have assumed that this type of apartment would be twice as likely to sell to property investors than first home buyers, but that ratio has reversed over the past six to twelve months. The successful buyers in this case are looking forward to moving in having now successfully got their foot in the property ownership door, so we wish them well.

The important thing to keep in mind is, no matter whether you are selling to first home buyers or finding the right buyer for a multi-million-dollar prestige home, there is no substitute for getting the right advice from some who has first-hand knowledge of what is happening in your local market.

So, don’t hesitate to give one of us a call at any time.