More should be done for first-home buy­ers: REIA

The Riverine Herald - Local Real Estate - - LOCALREALESTATE.COM.AU -

Real Es­tate In­sti­tute of Aus­tralia pres­i­dent Peter Bushby said the Novem­ber 2012 hous­ing fig­ures re­leased by the Aus­tralian Bureau of Statis­tics show the mod­est re­sponse to the in­ter­est rate cuts of May, June and Oc­to­ber had con­tin­ued. Hous­ing fi­nance fig­ures for Novem­ber 2012 show, in trend terms, the num­ber of fi­nance com­mit­ments had in­creased by a mod­est 0.4 per cent, fol­low­ing the 0.5 per cent in­crease in Oc­to­ber. If re­fi­nanc­ing was ex­cluded, the in­crease in trend terms for Novem­ber was 0.4 per cent, com­pared to the Oc­to­ber in­crease of 0.6 per cent and is the small­est in­crease for the last seven months. ‘‘In trend terms, in­creases were recorded in Queens­land, West­ern Aus­tralia, Vic­to­ria, the North­ern Ter­ri­tory and the ACT. The largest in­crease was in the North­ern Ter­ri­tory, up 2.1 per cent in trend terms, while de­clines were recorded in South Aus­tralia (0.6 per cent) and Tas­ma­nia (0.5 per cent),’’ Mr Bushby said. ‘‘In­creases were ev­i­dent for the pur­chase of new dwellings (up 2.2 per cent in trend terms) and the pur­chase of es­tab­lished dwellings up by 0.5 per cent in trend terms. The num­ber of com­mit­ments to the con­struc­tion of dwellings was down 1.4 per cent in trend terms. ‘‘The ma­jor dis­ap­point­ment in the fig­ures is the de­cline in firsthome­buy­ers, de­creas­ing to 15.8 per cent in Novem­ber 2012 com­pared to 18.7 per cent in Oc­to­ber 2012. This is the low­est since July 2004 and com­pares with the long-term av­er­age pro­por­tion of 20.2 per cent,’’ he said. The value of in­vest­ment hous­ing com­mit­ments rose by 2 per cent, in trend terms, in Novem­ber and is the sec­ond con­sec­u­tive monthly in­crease. ‘‘Of ma­jor con­cern is the drop in first home buy­ers to the low­est level in over eight years,’’ Mr Bushby said. ‘‘This, no doubt, can be at­trib­uted to some state gov­ern­ments with­draw­ing pre­vi­ous lev­els of sup­port for first home own­ers buy­ing ex­ist­ing dwellings.’’

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