Queensland first-time homebuyers are increasing their presence in the housing market, with market activity reaching its highest level in 11 years, according to the Australian Bureau of Statistics (ABS).
New loan commitments from first-time homebuyers increased 70% year over year in September, reaching the highest level since June 2009. On the month , first-time home buyers accounted for 41% of new home purchase loan commitments.
Adam Empringham, Image Property sales manager, said one indication of strong buyer interest is the increase in non-renewal of rental leases.
"We have had about 30 tenants who have indicated to us that they will not be renewing their lease in the last few months as they plan to buy their first home instead . This is much more than what is usually recorded and it is a strong indicator of the desire of potential buyers to become homeowners themselves, "he said.
Empringham said that the measures taken by federal and state governments to stimulate activity in the housing market are supporting the sentiment of many potential buyers.
"We have a number of government grants and concessions for first-time buyers pitching their property plans. Overall, market conditions in the southeast are good, with signs of more positivity to come when the borders reopen to an expected influx of interstate migrants early next year, "he said.
The historically low 0.1% cash rate will also help increase affordability of mortgages, especially if banks pass on the reduction fully, said Adrian Kelly, president of the Real Estate Institute of Australia .
"The reduction in interest rates, if passed on, would see the proportion of income needed to meet loan repayments decrease to 33.9%," he said.
Tim Lawless, head of research at CoreLogic, said the historically low rates will complement government initiatives to support housing.
"Stimulating these extremely low interest rates, along with initiatives announced in the federal budget and state-level incentives such as stamp duty concessions and construction subsidies, will likely suffice. to offset the headwinds the market is facing ”. he said. "Headwinds include the gradual reduction in tax incentives such as JobKeeper and the expiration of mortgage deferrals, which are going through their maximum expiration period this month."
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mt lawley
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coburg north
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st kilda west
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