Latest FHB data troubles property experts

Authored by CoreLogic research analyst Cameron Kusher, the Property Pulse stated December 2018 saw the lowest monthly finance commitments since June 2017 of 8,476, which was a decline of 9.6 per cent for the month and 12.6 per cent when compared to December 2017’s commitments.

Out of the property market, first-home buyers have been a source of growth demand in the housing market, so to see it soften could have larger repercussions across the property market, according to Mr Kusher.

“First home buyers aren’t a big share of the market, but they’ve really been the one source of growth in the market over the last 12 or 18 months, so if they come out of the market, then it could mean there’s further declines in the market, which is obviously not good from anyone’s perspective but particularly investors,” Mr Kusher said to Smart Property Investment.

While the decline of first-home buyers could mean investors would see less competition, the Property Pulse noted that the fading could lead to more affordable property; however, Mr Kusher warned that losing out on first-home buyers could mean significant economic concerns overall, he said.

“With prices falling, higher interest rates on investor loans, … I don’t know that you could categorise it as good news for investors because I don’t see, even if we continue to see a fade away by first-home buyers, that there’s going to be a rush into the market by investors at this stage.”

Across the country, first-home buyer commitments declined in nearly every state and territory for the month of December, with the exception of the Northern Territory, but the Property Pulse noted that the small size of the NT market meant it was volatile and prone to fluctuations.