First-time buyers plan a busy 2009

Posted on 10/01/2009  

The latest data confirms what we have been suggesting for months: that first home buyers will be the market leaders in 2009 and that more of them will opt for units over houses.

 

The latest Home Finance Index from the Mortgage and Finance Association of Australia finds that half of all first-home buyers believe now is a good time to enter the property market.

 

The increased FHOG and falling interest rates are considered the main catalysts to a revival of interest from first-time buyers.

 

Phil Naylor, CEO of the MFAA, says he expects to see large numbers of new entrants drawn into the market over the next 12 months.

 

The MFAA survey found that 51% of first-time buyers believed it was a good time to buy. It also revealed that 40% believe the Federal Government is doing enough to support home ownership, up sharply from 14% in a previous survey in April 2008.

 

“As we expected, the increase in the FHOG (from $7,000 to $14,000 for an existing home and to $21,000 for a new home) has been welcomed by this group – 54% of first-time buyers believe the increase will help them to buy a home.”

 

Of the 51% who consider this to be a good time to buy, 27% give as their main reason the lowering in home prices, 16% cite the drop in interest rates and 8% the FHOG.

 

Meanwhile, data from the Real Estate Institute of Queensland suggests units and townhouses are becoming increasingly popular with first-home buyers. Sales of lower-priced units increased in the September quarter.

 

This confirms earlier statistics which show that the market share of units and townhouses among first-home buyers has doubled over the past 10 years.

 

« Back