iBuyNew CEO, Mark Mendel has been featured in the news, Your Investment Property, where he states that first home buyers of property are in severe decline.
According to research done here in-house, alongside figures from the Australian Bureau of Statistics (ABS), the number of Australians looking to purchase their own home has dramatically fallen, particularly within the younger generation.
iBuyNew’s own data shows that the number of first home buyers between the ages of 25 – 35 made up 55% of the sector by the end of the 2015 fiscal year, and reduced to 40% by June 30, 2016.
The ABS also revealed that the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 13.9% in May, the lowest point in over a decade.
Some of the reasons that Mendel believes that youngsters are turning their backs on buying their first home is a combination of rising property prices alongside negative media coverage of the real estate and home finance markets. The federal election also seemed to have an impact, where although the majority of people were not deterred from buying a property, a lot of people were awaiting the outcome.
Mendel say, “Despite record low interest rates, the first time buyer sector has collapsed”.
He continued, “Even though property is very affordable with interest rates set to stay at historical lows, young Australians have been put off entering the market.”
Read the full here, which is published in Your Property Investment: First Home Buyers Have “Collapsed”