Investors swoop as first homebuyers ease
04 Mar 10
Investors swoop as first homebuyers ease
Recent weeks have confirmed the suspicion that Property investors took advantage of the dwindling number of first homebuyers in the market by lifting their stakes.
John McCormack, CEO of Starr Partners noted “We are encouraged by the rise in investor activity. The feared slump from the retreat of first homebuyers has well and truly been taken up by Investors”.
During December, investor loans rose by 1.1% (up $68 million) compared to the previous month alone. The Australian Bureau of Statistics noted an increase of 1.2% in November. Property purchases to rent or on-sell rose 0.9% while construction of dwellings to rent or on-sell climbed by 2.6%. The value of investment housing commitments seasonally adjusted rose by 1.9% in December.
In contrast, the proportion of first homebuyers has steadily declined to its lowest levels in 13 months. First home buyers accounted for 21% of all lending in December, easing further from record highs of 28.5% in May 2009.
Commsec predicts that the near term data is likely to look weak, largely due to potential home buyers having brought forward planned purchases over the past year.
The average home loan across Australia jumped 9.8% to $283,000 compared to a year ago, reflecting the staggering growth recorded over the past 12 months.