FHB Rise Confirmed By NAB Report

Posted on 12/02/2018  
FHB Rise Confirmed By NAB Report

The latest quarterly survey by NAB confirms other research showing that first-home buying activity is at its highest level in several years.

According to the NAB survey, first-time buyers account for 39% of sales of new dwellings and 32% of sales of established dwellings.

This market-share is higher than that recorded by the Australian Bureau of Statistics, partly because NAB includes first-timers who choose to buy an investment property as their first purchase and partly because the ABS is generally under-counting FHBs with its out-dated methodology.

Despite that, the ABS data indicates FHB activity is at its highest level in five years, while the NAB survey finds that FHB buying is the highest it’s been since NAB started its quarterly surveys four years ago.

Increased assistance for FHBs by the state governments in New South Wales and Victoria is considered responsible for the uplift in FHB activity, as well as the relative affordability in other areas of Australia where prices have not grown at the pace seen in Sydney and Melbourne.

“First home buyers – especially those buying for owner-occupation – continue raising their profile in new and established housing markets, with their share of demand reaching new survey highs,” the NAB report says.

FHBs are particularly prominent in the market for new homes. NAB says FHB owner-occupiers accounted for 29% of new property sales in the December Quarter – their highest market share since NAB started compiling its survey in 2014.

A further 10% of new home sales were made to FHBs as investors.

“In total, FHBs accounted for almost two out of five (39%) buyers of new properties in Q4 - the largest share since Q4 2014 (when NAB started its surveys),” the report says.

“The growth in FHB numbers was consistent with the latest official data also showing FHB claims on new mortgage lending are at their highest level in five years.”

FHBs were also busy in the market for established properties, with owner-occupier FHBs accounting for 22% of sales and FHB investors accounting for a further 10%.

“Overall, FHBs accounted for almost one in three (32%) established property sales in Q4, up from 29% in Q3, and a new survey high,” the NAB report says.

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