deflate
First home buyers are coming back - and fast. As the house price bubble slowly deflates, the number taking out loans for first homes in Victoria has grown by more than half so far this year.
Lending data from the Australian Bureau of Statistics last week shows that nationally 2000 to 2500 more first home buyers each month are taking out loans compared with a year earlier, as they replace investors in the market.
Victoria has accounted for almost half the rise. In the first five months of last year, just 8013 first home buyers took out loans in the state. In the same months this year, that number jumped 53 per cent to 12,271, as homes became more affordable.
Estate agents were reporting the same trend from auctions and private sales, said Enzo Raimondo, chief executive of the Real Estate Institute of Victoria. "Our members reported 22 per cent of all buyers in April were first home buyers, up from 14 per cent in January 2004," he said.
Mr Raimondo cited two reasons why the proportion of these buyers had risen so sharply. "There's been a cooling of what had been an overheated market," he said. "Property prices are now basically stable, while people's incomes are rising, so buying a house is now more affordable.
[ First home buyers flock back into market ]
Lending data from the Australian Bureau of Statistics last week shows that nationally 2000 to 2500 more first home buyers each month are taking out loans compared with a year earlier, as they replace investors in the market.
Victoria has accounted for almost half the rise. In the first five months of last year, just 8013 first home buyers took out loans in the state. In the same months this year, that number jumped 53 per cent to 12,271, as homes became more affordable.
Estate agents were reporting the same trend from auctions and private sales, said Enzo Raimondo, chief executive of the Real Estate Institute of Victoria. "Our members reported 22 per cent of all buyers in April were first home buyers, up from 14 per cent in January 2004," he said.
Mr Raimondo cited two reasons why the proportion of these buyers had risen so sharply. "There's been a cooling of what had been an overheated market," he said. "Property prices are now basically stable, while people's incomes are rising, so buying a house is now more affordable.
[ First home buyers flock back into market ]
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