First home buyer fallout in New South Wales

First home buyer fallout in New South Wales
First home buyer fallout in New South Wales

First home buyer activity in New South Wales is at the lowest on record for the state according to Domain Group chief economist Andrew Wilson.

He said latest ABS data reveals that just 1284 loans were approved for NSW first home buyers over September which is the smallest September total recorded in the series since the all-time low recorded over September 1991.

"First home buyer loans in NSW accounted for a record low 4.5 percent of all lending approved for housing purchases over September," he said.

"This is well below the long-term market share for this group of 13.0 percent and is clearly the lowest proportion of all the state markets – well below the next lowest state South Australia with a 9.7 percent loan market share.

First home buyer residential loan market share September 16

NSW   4.5 percent

VIC   10.5 percent

QLD  12.9 percent

SA      9.7 percent

WA    19.7 percent

TAS    13.2 percent

Source: ABS, Dr Andrew Wilson

 

"Although activity levels are low and falling, the average loan approved for a first home buyer in NSW increased by 2.9 percent to $376,700 over the month and was clearly the highest of all the states with next highest Victoria at $325,100.

"First home buyer activity in NSW is set to remain at historically low levels, particularly with home prices rising sharply in the Sydney market over recent months.

"The recent surge in investor activity is also clearly a factor in sidelining NSW first home buyers and will continue to contribute significantly to prices growth."

Tags: 
First Home Buyers Residential Sales

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