Sydney Morning Herald: First-time home buyers' demand is increasing
Sydney Today, March 3, Australian Eastern Time, everyone thought that first time home buyers would stop buying properties once the stamp duty on established properties was no longer exempted at the end of last year. Interestingly, they did not stop buying.
Compared with the boom in the last three months of last year, the number of home purchases has fallen. But Dr Andrew Wilson, a senior economist at Australian Property Monitors, pointed out that the January housing loan data from the Reserve Bank showed that more first-time home buyers bought Houses and Apartments than in the past few years. He said that compared with the very high level in December, the proportion of people applying for mortgages in January fell by 1%, but it was still nearly 12% higher than in January 1 and much higher than the long-term average.
Dr Andrew Wilson said: “The number of first-time homebuyers that have expired has not fallen to the bottom. Compared with the huge number at the end of last year, of course it is now down.” The number of these homebuyers is less, depending on what you are referring to. That's the situation. In some areas outside the suburbs, reports from real estate agents show a decline compared to the end of last year.
Starr Partners Real Estate has offices throughout Sydney's western region. Its chief executive Douglas Driscoll pointed out that the number of their properties sold to first home buyers has fallen by 20% compared to the last quarter of last year. For example, Auburn and Merrylands, which have been in business for more than 20 years, have records for November and December. Driscoll said: "January and February are like turning off the faucet." But he said buyers are slowly picking up this month.
However, in the inner suburbs and central suburbs, market demand seems to be as strong as before. Shannan Whitney, chairman of BresicWhitney, believes this is mainly due to two reasons. The first is because of the high cost of renting a house in the urban area. He said that this is the strongest time for the Sydney housing rental market. The second reason is that first-time home buyers think that the property is now more affordable than before, and they hope to buy the house before it becomes very expensive.
Whitney said: "There is no doubt that the biggest market demand for first home buyers is properties with a house price of less than $800,000. Generally speaking, we think this is the same as that of many people who prefer to rent a house under high housing prices. The current housing prices are more attractive than in the past 12 months.” (Ivy)