Today’s Australian Bureau of Statistics release of housing finance data shows that first home buyers are being left behind in the housing market, according to Australians for Affordable Housing.
“The months leading into the end of 2012 saw a marked decline in the proportion of first home buyers, compared to other home sales. Recent falls in interest rates seem to have benefited investors, but have left first home buyers cold.” Said Joel Pringle, Campaign Manager for Australians for Affordable Housing.
“In spite of low interest rates, the struggles of potential first home buyers can be seen across the country and are part of a worrying trend. The proportion of first home buyers has collapsed from 21.1 per cent in December 2011 to 14.9 per cent in December 2012.”
“The drop in the proportion of first home buyers comes as average first home loans, and average home loans overall, are again increasing. Increasing house prices will provide further affordability challenges, if they continue.”
“The drop in first home buyers was most pronounced in NSW, likely as a result of the withdrawal of first home buyers grants. In the longer term, these grants simply push up prices, so we’ll be watching the longer term affects of this policy change.”
“As Governments continue to ignore this problem, it gets harder for young families to buy their first home. It’s a shame that we are in an election year, but neither the Government nor the Opposition has offered anything other than the status quo. House prices will continue to run away from people’s ability to pay.”
Australians for Affordable Housing is a coalition of national housing, welfare and community sector organisations to highlight the problem of housing affordability in Australia. For more information visit www.housingstressed.org.au
For enquiries, case studies and interviews contact Joel Pringle, 0427 563 989
Follow AAH on Facebook and Twitter: @housingstressed