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The number of first home buyers decreased by 6.7 per cent during the September quarter, down 5.8 per cent compared to the September quarter of 2015.
The Adelaide Bank/REIA Housing Affordability Report shows that housing affordability declined marginally during the third quarter of 2016.
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The report found that over the quarter, the proportion of the median family income required to meet average loan repayments was 29.5 per cent, which remains at the lower end of the scale over the last seven years.
First home buyers now make up 13.2 per cent of the owner-occupier market. With the exception of Queensland and the Northern Territory, all states and territories saw decreases in the number of first home buyers over the September quarter of 2016.
“Compared to the corresponding quarter 2015, the number of first home buyers went up in Queensland, Tasmania and the Northern Territory,” the report noted.
“The largest drop was seen in Western Australia, down by 15.6 per cent”.
Meanwhile, the average loan size for first home buyers increased by 1.5 per cent over the quarter to $319,633.
“Over the quarter, the average loan size to first home buyers increased across the country with the exception of the Northern Territory,” according to the report.
“Compared to 12 months ago, the average loan size to first home buyers decreased in NSW, Western Australia and the Northern Territory.”
[Related: Low interest rates negatively impacting FHBs]
