Latest ABS home loan data reports that first home buyers
remain at or near historical lows. This
is despite recent changes by the ABS in the estimation process for this group
designed to adjust perceived under-reporting of the series.
The home loan (excluding refinancing) national market share
for first home buyers fell to 10 percent over December - the lowest proportion
reported by the ABS series since April 2004.
New South Wales remains the clear underperformer of all the
states with a market share for first home buyers of just 7.1 percent recorded
over December. This is just above the all-time low recorded in June 2014 of 6.9
percent.
First home buyer numbers however increased to 2000 over
December – the highest monthly total since December 2013. Surging investors and
strong changeover buyer activity combined to lower the market share of first
home buyer despite the increase.
High and rising prices in the booming Sydney market will
continue to sideline local first home buyers over the foreseeable future who
will nonetheless continue to trickle back into the market.
Dr Andrew Wilson is
Domain Group Senior Economist Twitter@DocAndrewWilson
