Market/Finance News Blog: First home buyer numbers down

By the resi financial blog team, 17 February 2015

Market/Finance News Blog: First home buyer numbers down

Only a day after the RBA's decision to trim the official cash rate, the Australian Bureau of Statistics (ABS) announced that they could revise first home buyer data by up to 20 per cent after reporting method errors were found. Many analysts expect more first home buyers to take advantage of the better lending conditions to get a foot in the door of the property market, but the housing finance data for the final month of 2014 revealed that first home buyer activity wasn't as strong as predicted. 

Industry commentators breathed a sigh of relief when the ABS launched an investigation into under-reporting of first home buyer data, finding that some lenders were excluding figures for first home buyers who did not receive first home owner grants. But the revised figures from ABS for December 2014 uncovered that activity in this segment isn't nearly as strong as they hoped. In trend terms, the data shows the number of first home buyer loans for owner occupied houses fell to 14.5 per cent in December last year, down from 14.6 per cent in the previous month.

Real Estate Institute of Australia CEO Amanda Lynch noted that despite a review of the method used to estimate first home buyer levels, the figures are still concerning. 

"The figures shows first home buyer levels stand at 14.5 percent for December. While the revisions have increased the proportion of first home buyers by around two percentage points, the figure is the lowest since May 2004 and shows a steady decline since May 2012," she said.

It's not all bad news, however - the revisions increased the proportion of first home buyers by around 2 percentage points, which gives a more accurate picture of how this segment is behaving. In any case, first time buyers might also have to wait a few weeks longer for the benefits of the rate cuts trickle through.

If you're dreaming of buying your first home but aren't sure how to make this dream a reality, contact the loan experts at resi. They'll be able to sort you out with a home loan to best suit your needs. 

Categories: Home Loans