NSW First Home Buyers reach lowest ever level

November was not a good month for first home buyers where their numbers in NSW dropped to its lowest ever level; with less than 1 in 50 new borrowers (1.9%) being first home buyers, according to statistics from the AFG.

But it wasn’t just New South Wales that saw this alarming drop; other states including Victoria and South Australia have also seen the number of first home buyers fall to their lowest ever level too, falling to 7.4% and 6.3% respectively.

However, this is not the case for Queensland, where first home buying actually increased slightly from its all-time low of 4.7% to 5.2%, whilst the highest number of first home buyers are found in Western Australia, rising from 17.9% to 19.1% last month.

First home buyers in WA are helped by the state government grant, receiving $10k if they move into a new build property, or $3k if they buy an established property. For NSW, there is a $15,000 grant, but this is for new homes only.

Even though first home buyers are representing a smaller share of the market, the mortgage market is actually growing.

Investment mortgages represented a share of 40.7% of all mortgages processed nationally, with home loans for investors comprising 50.9% in NSW showing that this investor sector is still strong. For VIC this drops to 39.8%, 35.9% in SA, 34.5% in QLD and 29.8% in WA.

A total of 9,806 mortgages were sold by the AFG throughout Australia during November, of which 2,738 were in NSW.

AFG’s General Manager of Sales and Operations, Mark Hewitt states that “We’ve been highlighting the imbalance in the market since the axing of first home buyer grants in several states.”

He also said that “Last month was the closest to zero we’ve recorded for NSW, and first home buying is well below its long term trend of around 12% - 15% everywhere except in WA.”
Published on 9th of December 2014 by Marty Stanowich
Marty Stanowich
Marty Stanowich


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