Investment Purchases Fill The First Home Buyer Gap

Below is a statement from the REIA, regarding the latest ABS Housing Finance Figures:

The latest Australian Bureau of Statistics (ABS) Housing Finance figures present no surprises, according to the Real Estate Institute of Australia (REIA).

“As buyers have been responding to the improved affordability brought about by cuts in official interest rates since October last year, we are seeing a slowdown in the rate of growth of finance commitments,” said REIA CEO, Mr Neil Fisher.

Total finance commitments increased by 0.5 per cent in July; the lowest growth since August 2008.

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Prices to Fall 10 Per Cent When Housing Handouts End, Researcher Says

The phasing out of the First Home Owners Grant Boost and a range of other state government benefits could drive down lower-end house prices by as much as 10% in some markets according to a new analysis from CB Richard Ellis.

According to Erin Rolandsen, CBRE’s Manager of Residential Research, the May 2009 finance figures just released by the ABS confirm that the various stimulus measures to the housing market have evidently helped to increase sales activity.

The total number of dwellings purchased by owner occupiers was 29% higher in May 2009 than in October 2008 when the boost was introduced.

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Number of First Home Buyers Dip, as Lenders Want to See Savings

Mortgage Choice, Australia’s largest independently owned mortgage broker, is not surprised by the April 2009 Australian Bureau of Statistics (ABS) housing finance figures, which show a decrease in the number of first homebuyers at the same time as activity from investors and owner occupiers increased.
However, the value of new housing loans across all categories – first homebuyers, owner occupiers and investors-fixed loans – all rose significantly. In fact, first homebuyers as a total of the value of commitments hit a record 28%, from 27.3% in March 2009.

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More Than 78,000 Australians Take Up First Home Owners Boost

Tanya PlibersekNew figures show that the Rudd Government’s Nation Building Economic Stimulus Plan is continuing to support jobs in the housing sector with more than 78,000 Australians taking up the First Home Owners Boost by the end of April.

April saw the highest take-up so far of the First Home Owners Boost – 18,736.

ABS Building Approvals figures out today show the seasonally adjusted total dwelling units approved rose by 5.1 per cent in April to a level of 11,402. This is the third consecutive monthly rise.

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Investors to Become a Force at Expense of First Home Buyers, Survey Says

INVESTORS will take over from first home buyers, as a demand driver from next year.

That’s the view of mortgage broker Mortgage Choice, which released a survey today saying 75 per cent of Victorian respondents were delaying buying a property until after the First Home Owners Boost ends in December. A similar survey conducted a few months ago showed just 23 per cent of respondents were waiting for the boost to end, before buying.

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