September Housing Finance: The first home buyer struggle continues

The housing finance data for September 2016 was released today by the Australian Bureau of Statistics (ABS). The report showed that the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 13.1% from 13.1% in August 2016. On a like-for-like basis (adjusting for seasonal factors) there was an even sharper decline improvement, with a significant drop from 13.6% in September 2015 to 13.1% in September 2016.

“With the low level of property stock on the market at the moment, first home buyers have limited choices in certain pockets of Australia” said FHBA Co-Founder Daniel Cohen. “It is no surprise the number of first home buyers continues to fall, as investors and cashed up baby boomers continue to outbid first home buyers.” Daniel said.


Average loan size in VIC & QLD hit record highs for first home buyers

NSW – Up 2.9% from $366,000 to $376,700

VIC – Up 3.2% from $315,100 to $325,100 (Record high)

QLD – Up 1% from $305,500 to $308,700  (Record high)

SA – Down -1.5% from $266,700 to $262,700

WA – Down -0.1% from $321,100 to $320,800

TAS – Up 18.6% from $216,900 to $257,300

NT – Down -7.5% from $315,300 to $291,800

ACT – Up 6.7% from $311,300 to $332,100

NATIONAL – Up 1.9% from $318,300 to $324,300

“The Eastern States of Australia continue to record strong price increases; this is reflected in the increasing amount first home buyers are forced to borrow in order to purchase their first home. Victoria surged ahead to equal the highest average first home buyer loan on record, whilst QLD first home buyers are now borrowing more than ever to purchase their first home” said FHBA Co-Founder Taj Singh. “Tasmania has reversed its welcome drop from last month to record a strong 18.6% increase in average loan size month on month, the volatility can be attributed to the low volume of first home buyers in Tasmania.”

With average first home buyer loan sizes rising over the course of the year it is important to ensure first home buyers get a home loan that suits their needs. Our team of national first home buyer mortgage brokers can assist you by providing a range of home loan options. To view more information on how FHBA Mortgages can help you, please click here. 

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First Home Buyers Australia