New buyers left behind in mortgage rush

FIRST home buyers have gone missing in the latest housing market upswing, despite low interest rates.

New figures show the proportion of first home buyers taking out a mortgage in any one month shrank to an all time low of 12.5 per cent in September.

"First home buyers are competing with cashed-up investors and upgraders who have significant equity in their property," director at mortgage provider Loan Market Mark de Martino said in a statement.

He says market entrants must build up a sizeable deposit to give them the best chance to compete and it is only a matter of time before they return in numbers.

Macquarie research economist Gabby Hajj says this will have implications for consumer spending because younger home buyers tend to undertake more spending setting up home than investors.

Overall, Monday's data showed a total 51,928 loans were granted to owner occupiers in September, the largest number since October 2009, and 4.4 per cent higher than a month earlier.

The value of these loans was $15.8 billon and 5.3 per cent higher than a month earlier.

Loans taken out by investors amounted to $9.4 billon, a 5.2 per cent rise.

ANZ Bank, taking into account this weekend's home auctions, said there was a further strengthening in house prices in the past week, rising by an average 0.3 per cent among capital cities to be 8.3 per cent up on the year.

Sydney prices are now more than 12 per cent higher annually, followed by Melbourne at just over eight per cent and Perth at just under seven.

Commonwealth Securities economist Savanth Sebastian believes the housing sector is fast becoming the shining light of the Australian economy.

"With interest rates low, population rising and housing affordability still attractive, housing is best placed to take over the leadership role from mining as the nation's key economic driver," Mr Savanth said in a note to clients.

"The lift in housing approvals, rising new home sales, higher house prices will support confidence and provide policymakers with a degree of encouragement moving into 2014."

The latest readings for consumer and business confidence are due over the next couple of days.

The Reserve Bank of Australia, releasing its quarterly monetary policy statement on Friday, said confidence has risen to above-average levels, although it was "too early to know whether this pick-up will be sustained".

It left the cash rate at an all-time low of 2.5 per cent at last week's board meeting, but hasn't ruled out the possibility of having to reduce further to support economic activity.

Anda sedang membaca artikel tentang

New buyers left behind in mortgage rush

Dengan url

https://perjuanganpanjang.blogspot.com/2013/11/new-buyers-left-behind-in-mortgage-rush.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

New buyers left behind in mortgage rush

namun jangan lupa untuk meletakkan link

New buyers left behind in mortgage rush

sebagai sumbernya