The market for new homes and mortgages for First Home Buyers continues to dominate in Western Australia, with new figures showing WA is far more advanced market for first home buyers than anywhere else in Australia.
Statistics released by the Australian Bureau of Statistics and by other sources indicates Western Australian first home buyers are still very active in the local market.
Meanwhile, other Australian states like New South Wales and Victoria, first home buyers activity continues to plummet.
Terry Ryder writes in Property Observer that Western Australia was the only state to see record new first home buyer grants, far greater than other states:
“Western Australia went against the trend by increasing from 13,959 in 2011 to 22,135 in 2013. But Western Australia still offers a grant ($3,000) for first timers buying established homes.”
“The fact that Western Australia, the only state which offers a grant for both new and established homes, has rising figures for first-home buyers, highlights a discrepancy between states. Why does WA have a higher percentage of first-home buyers than all other states and territories?”
Other figures released by AFG Online show first home buyers represented 21% of activity in July 2014, while the average was only 9.5% across the rest of Australia for first home buyers.
First home buying patterns vary across the country. In New South Wales, first home buyers comprised just 3.5% of all mortgages processed. The equivalent figures were 5.5% in Queensland, 9.4% in Victoria, 9.8% in South Australia and 21.0% in Western Australia.
Mark Hewitt, General Manager Sales and Operations said property prices in Sydney may be to blame for the figures, pricing first home owners there out of the market: “The long term (Australian) average for first home buyer loans is around 12% – 15% of the total. We saw overnight slumps from those levels when NSW and QLD withdrew first home buyer grants two years ago.”
“Since then, property prices in Sydney in particular, have been steadily increasing. This represents a double-whammy for first home buyers. It also has important socio-economic implications when, even with interest rates at historic lows, people can’t afford to get on the property ladder.”
It appears that Western Australia’s generous concessions to first home buyers and first home builders; new property investment activity, low interest rates; our more affordable property prices (compared to other Australian cities) and our strong local economy, all continue to allow young people in WA to get into their first home