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Feb 12, 2013
joelpringle

First home owners pushed out

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

  • ParadigmPerceptions

    House price affordability and the labour market work
    together to cause continuing social stresses and this is reflected in the
    figures. With the ever increasing insecurity in the labour market  (The continuing increase in casual and part
    time employment and ‘contract’ for fulltime workers) workers do not have
    autonomy over their lives.  They live in
    continual survival mode. Where once a home could be purchased by allocating 30%
    of their wages, it is now 60% for the majority. Well-being, rather than profits, must be a main
    consideration if a peaceful social structure in the future is to survive.  And this must come, not just governments, but
    also the 20% of the very rich that own 65% of wealth in Australia.

  • Alex

    This country is f#@cked. It’s becoming a country ruled by the rich for the rich, a la India or South Africa. Policies designed to make the rich richer and the poor poorer, the rich keep buying more and more houses while the poor and many middle class people have no hope now of ever buying a home. Emigration is at an all time high, and i’m actually struggling to find a reason not to be a part of that statistic.

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