First-timers’ time to shine

Cooling market encourages buyers

“First-home buyers are finally getting some time in the sun. There’s space in the market for them to find their feet without having to go toe-to-toe with cashed-up investors.”

THE number of first-home buyers in the market in Victoria has increased about 25 per cent this year as new ABS figures show they are at a six-year high nationally.

The ABS housing finance data for June shows an overall 1.6 per cent drop in lending from the previous month, with falls from both investors and owner-occupiers.

But first-home buyers capitalised on a less-crowded market, recording 18.1 per cent of new home loans in June nationally – the highest proportion since October 2012, and a higher 19 per cent of owner-occupier buyers in Victoria.

ABS figures show 2988 firsthome buyers entered the market in Victoria each month on average this year, up from an average 2197 in 2017.

RateCity research director

RATECITY RESEARCH DIRECTOR SALLY TINDALL

Sally Tindall said the data showed first-home buyers were taking advantage of a cooling market in the big capital cities, while investors were being hit with financial roadblocks.

“First-home buyers are finally getting some time in the sun. There’s space in the market for them to find their feet without having to go toe-totoe with cashed-up investors,” Ms Tindall said.

Hayeswinckle, Highton agent Peter Norman said he had seen a big increase in firsthome buyers looking for houses in Geelong this year.

“They are looking all over Geelong for anything between $450,000 and $600,000 and the majority are local,” Mr Norman said.

That’s also the sweet spot for Geelong real estate, with CoreLogic figures showing median house prices in 28 suburbs were within that range.

HIA senior economist Shane Garrett said the volume of first-home buyer owner-occupier loans had increased by 11.4 per cent over the past 12 months. “There are a few reasons behind this welcome trend. Several state governments have enhanced their incentives giving the first-home buyer segment a new lease of life,” he said.