Login
ISCOVER
First home buyer numbers have now reached alarming levels in New South Wales, according to AFG data.
New buyers represented only 1.9 per cent of the mortgages that AFG brokers wrote for NSW clients in November.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Victoria and South Australia also recorded record-low first home buyer shares of 7.4 per cent and 6.3 per cent, respectively.
The national average was 7.3 per cent – a significant drop from the 10.3 per cent share recorded the year before.
AFG's general manager of sales and operations, Mark Hewitt, said the aggregator has been highlighting the imbalance in the market since several states axed their first home buyer grants.
"Last month was the closest to zero we've recorded for NSW, and first home buying is well below its long-term trend of around 12 to 15 per cent everywhere except in Western Australia," he said.
New buyers in Western Australia receive a $10,000 government grant if they move into a new property or $3,000 if they buy an established property.
However, while first home buyers have represented a decreasing share of the market, the mortgage market overall has continued to expand.
AFG brokers wrote 9,806 mortgages in November, which marked a 7.0 per cent annual increase. The sum dollar total of those mortgages rose 11.5 per cent to $4.5 billion.
The size of an average mortgage climbed 4.2 per cent to $454,000, while the average LVR rose from 68.9 per cent to 69.6 per cent.
Major banks experienced a drop in market share, from 72.3 per cent to 70.1 per cent, while the non-majors grew their share from 26.4 per cent to 29.1 per cent.
