Among Overall Owner Occupiers Mortgage, First Home Buyers Share is 14.7%
As per the new data collected from Australian Bureau of Statistics, first home buyers contribute only 14.7% share along overall owner occupiers mortgage.
The figures collected shows that the lowest proportion of first home buyers comes from New South Wales, contributing 12% over the past year. All other states follow the same pattern, except Western Australia where the first home buyers contribution is highest among all the states with 21.9%. Home values in Perth have also reduced by 4.6%, after showing an improvement in December 2014.
According to Tim Lawless in his Switzer Daily column, the biggest barrier to first home buyers is affordability. Home prices, especially in Sydney and Melbourne, have appreciated faster than incomes, making it harder for first home buyers to raise a deposit. It also does not help that lenders are seeking a 20 per cent deposit on new mortgages. Another barrier is the sluggish rent prices. Capital city rents were down 0.2 per cent over the 12 months to March 2016. Declining rates and affordability pressures are likely to push first home buyers to the sidelines for the time being.