New South Wales first home buyers now strikingly uncommon

Last month, the proportion of first home buyers in New South Wales dropped to 1.9% - or less than one in 50 borrowers, according to AFG statistics.

This November figure is the lowest ever level recorded and coincides with drops to historic lows also recorded in Victoria and South Australia. Their first home buyer proportions were recorded at 7.4% for Victoria and 6.3% in South Australia.

Queensland first home buyers have lifted off the lowest levels seen last month, at 4.7%, to a marginally improved 5.2%, while Western Australia’s first home buyers are up to 19.1% from 17.9%.

Investors are still a strong segment, totalling 40.7% of new loans and spanning up to 50.9% in New South Wales. This drops to 39.8% in Victoria and 35.9% in South Australia. In Queensland and Western Australia investors make up 34.5% and 29.8% of the market respectively.

AFG’s general manager of sales and operations Mark Hewitt said that they’ve been highlighting the imbalance in the market since losing the first home buyers grant in a number of areas.

“Last month was the closest to zero we’ve recorded for NSW, and first home buying is well below its long term trend of around 12% to 15% everywhere except in WA,” said Hewitt.

They point to a $10,000 grant available for first home buyers purchasing new properties in WA and $3,000 for established purchasers.