 First home buyers less keen
The rush of interest from first home buyers is slowing with new data showing first home buyers fell in June. The Australian Bureau of Statistics released the figures today.
The drop could be due to the boost to the grant slowly being reduced, and the number of first home buyers (as a percentage of all borrowers) fell to 27.1 percent in June from 28.5 in May, the first fall in eight months.
Earlier this year auctions and real estate agents saw a rush of first home buyers entering the market as the boost to the grant was continued.
RBA Governor Glenn Stevens suggests that as interest rates will begin to rise over the coming months and the grant is being reduced later this year, there seems to be less incentive for first home buyers to enter the market.
However the number of home loans rose 1.1 percent in June, seasonally adjusted, increasing for the ninth straight month.
But the buyers of property are expected to increasingly be investors, rather than owner occupiers, once the Federal Government First Home Buyer Grant starts to wind down from September 30.
Meanwhile, house prices in capital cities across the country jumped up in the three months to June, according to the latest ABS figures. Price rises occurred in all capital cities with Sydney and Melbourne leading the charge, experiencing a 4.9 percent and 5.2 percent rise respectively. All other capital cities saw house prices rise in the June quarter, with Darwin showing the weakest growth of 2.4 percent.
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