News

As property investors leave the market first-home buyers are set for their best spring selling season for years

11 September 2017

The spring selling season this year is set to be the best for first-home buyers for some time as investors leave the market and prices stabilise.

Investor loans have been hit hard by regulator crackdowns and tougher lending rules and it has opened the door this year for first-home buyers to approach property sales with more confidence having less investors to compete with.

The tougher lending rules look set to stay even though they have already had noticeable effects, with APRA chairman Wayne Byres saying they would be implementing more macroprudential measures next year.

"Given the environment we are in - high house prices, high household debt, low interest rates and subdued income growth - that scrutiny won't lessen any time soon," he said in a speech last week.

Louis Christopher from SQM Research said this year the spring property selling season looks very different.

"It's an entirely different spring market," he told Australian Financial Review.

"This time last year, listings were abnormally low and demand was abnormally strong."

"As the season moved on, you have the situation where listings were even less because vendors were so fearful of not being able to buy back into the market."

"This time round we're not having that. We're having more listings, a lot less buyers in the market."

"Days on market are increasing, particularly in Sydney. Listings have picked up - not at the oversupply levels - but they've picked up."

As a result of the slowdown in investment lending first-home buyers are gathering momentum. In July, lending to first-home buyers jumped by 6.5 per cent in the country, helped along by stamp duty exemptions in Melbourne and Sydney.

In another boost for first-home buyers this spring, the Australian dollar has again surged past the US80c mark, making Australian property less attractive from overseas investors, giving first-home buyers even less people to contend with on auction day.

 

 

Latest

If you need access to fast short-term capital did you know that bridging finance could be an option?

Read more

The Reserve Bank has warned house prices are at risk of falling if the banking royal commission ends up causing banks to restrict the amount of money they are willing to lend.

Read more

On the weekend our city recorded a clearance rate of 60.7 per cent and for the weekend prior, the auction clearance rate has been revised down to below 60 per cent – to 58.9 per cent.

Read more

This year’s Federal Budget includes a plan to help up to 20,000 older Australians stay in their own home but some say it contradicts policies designed to free up housing.

Read more