Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Record number of home buyers squeezed out of market

Squeezed_out_of_the_market

While investment in Australia’s property markets remains hot, owner-occupiers are being priced out of the market, according to the latest data.

Property research house CoreLogic data shows that while January 2017 was the hottest month since May 2017 recorded at $13.8 million, owner-occupier demand fell to a 12-month low.

“With investor and upgrader demand so substantial currently in the housing market, potential first home buyers are facing higher competition with other segments of the market which is clearly affecting their ability or willingness to participate in the market,” CoreLogic head of research Cameron Kusher said.

This investment boom produced a staggering 34.2 per cent increase in construction in January, as dwindling supply attempts to keep up with this demand.

Advertisement
Advertisement

Mr Kusher said first home buyers can no longer compete in the market with investors and homeowners, having reaped the rewards from an enormous run-up in property prices. 

“Those that already own homes have benefited from the ongoing value growth across many regions of the country,” he said.

“Subsequently, those who already own a home have more housing equity and are able to pay more for those homes as an investment than first home buyers who are likely to be targeting similar properties for owner occupation.”

That’s managed to push first home buyer participation to a record low of 7.1 per cent of all housing finance commitments.

Compare that to investors’ 39 per cent share, or non-first home buyers 34.8 per cent, and the imbalance becomes evident.

“Given that owner-occupier first home buyer finance commitments are at an historic low, it is no wonder the federal government is coming under increasing pressure to do more to assist housing affordability,” Mr Kusher said. 

Record number of home buyers squeezed out of market
Squeezed_out_of_the_market
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - This is all identity politics rubbish. Inasmuch as most families are dual income earners and as most women are not in high paying jobs for a variety.......
Margaret - Happy that I won't be around in 2060....
Anonymous - This "analysis" is misconceived and should get a fail in statistics. Men pay more tax because they work more. So they should get more relief. And,.......
Anonymous - I'm not sure how the ATO can declare there is an "$8.7 Billion hole" without already being able to confirm that all these claims are illegitimate?

Is.......