WhatsNew2Day
Latest News And Breaking Headlines

The number of buyers of first homes increases by 26 percent in one year, the Australian Bureau of Statistics reveals

How young people flow back to the housing market, with an initial number of buyers increasing by 26 percent per year

  • In the past year alone, the number of buyers of first homes throughout Australia increased by 26 percent
  • This happened before the start of the First Home Loan Deposit Scheme
  • Young buyers bought property when house prices recovered in Sydney, Melbourne

The number of buyers of a first home in Australia has increased by more than a quarter in just one year, although homes in major cities are becoming more expensive.

Young people returned to the real estate market last year when the average house price in Sydney came close to $ 1 million, after a record slump.

In the 12 months to December, the number of buyers of a first home across Australia, with a home to live in, increased by 26 percent.

Their share in the mortgage market has also risen to the highest level in eight years.

The number of buyers of first homes in Australia has increased by more than a quarter in just one year, although homes in major cities are becoming more expensive

The number of buyers of first homes in Australia has increased by more than a quarter in just one year, although homes in major cities are becoming more expensive

The number of owners of neophytes grew from 8,002 in December 2018 to 10,086 a year later, according to data from the Australian Bureau of Statistics on lending on Tuesday.

The flurry of activity about newcomers in real estate occurred even before the January 1, 2020 launch of the federal government’s new $ 500 million First Home Loan Deposit Scheme.

Instead of having to save for a 20 percent down payment, first home buyers only have to make a 5 percent down payment, while taxpayers finance the rest, as part of an important election pledge.

Buyers of first homes accounted for 30.2 percent of all residents of their own homes in December, the highest proportion in eight years.

Young people returned to the real estate market last year when the average house price in Sydney came close to $ 1 million, after a record slump. Pictured: a house in Asquith in the north of the city for sale for $ 1.25 million

Young people re-entered the real estate market last year when the average house price in Sydney came close to $ 1 million, after a record slump. Pictured: a house in Asquith in the north of the city for sale for $ 1.25 million

Young people re-entered the real estate market last year when the average house price in Sydney came close to $ 1 million, after a record slump. Pictured: a house in Asquith in the north of the city for sale for $ 1.25 million

Limits of the First Home Loan Deposit Scheme

Sydney: $ 700,000

Melbourne: $ 600,000

Brisbane: $ 475,000

Perth: $ 400,000

Adelaide: $ 400,000

Hobart: $ 400,000

Canberra: $ 500,000

Darwin: $ 375,000

Source: Treasury

A CommSec analysis of the data showed that average homeowner loans throughout Australia had increased by 16 percent to $ 497,900 in the past year.

With a 20 percent down payment, a loan of that size would probably finance the purchase of a house in Brisbane, where the average house price in January was $ 546,781, CoreLogic data showed.

However, a typical Australian home loan would not be enough to buy a typical Sydney home, where the average price is $ 994,300, after an annual recovery of 9.3 percent of the value of real estate.

It would also fail to help someone buy a detached house in Melbourne, where the median rose by 8 percent to $ 798,671 in the year to January.

CommSec chief economist Craig James said that a rise in house prices in the big city would give the Reserve Bank of Australia less chance of lowering interest rates from a current record low of 0.75 percent.

The number of new residents living in their own homes grew by 26 percent, from 8,002 in December 2018 to 10,086 a year later, according to data from the Australian Bureau of Statistics on lending on Tuesday. Pictured: a Sydney auction

The number of new residents living in their own homes grew by 26 percent, from 8,002 in December 2018 to 10,086 a year later, according to data from the Australian Bureau of Statistics on lending on Tuesday. Pictured: a Sydney auction

The number of new residents living in their own homes grew by 26 percent, from 8,002 in December 2018 to 10,086 a year later, according to data from the Australian Bureau of Statistics on lending on Tuesday. Pictured: a Sydney auction

“There is upward pressure on house prices, which serves to keep the Reserve Bank on the sidelines of interest,” he said.

House prices in Sydney and Melbourne peaked in 2017 before they plummeted, following a crackdown on the Australian Prudential Regulation Authority against loans to investors and interest rates.

The loan rules have since been relaxed.

CoreLogic expects real estate prices in the two largest cities in Australia to peak again in April, 10 months after the low point in mid-2019.

.

Comments
Loading...