Thursday, 23 September 2010
Investors are finally filling the gap created by first home buyers.
According to RP Data’s national research director Tim Lawless, while owner occupiers still well and truly dominate the market, investors have become a much larger proportion of buyers compared to this time last year.
“Based on the value of housing finance commitments owner occupiers now comprise about 66 per cent of the overall market and investors 34 per cent,” Mr Lawless told Real Estate Business.
“Back in March last year owner occupiers represented almost 75 per cent of the market. The change in buyer composition is due to two factors: a dramatic reduction in first home buyers and a consistent ramp up in investor activity. First home buyers peaked at about 28 per cent of all owner occupier housing finance commitments and have since fallen to about 16 per cent.”
The value of investor finance commitments has increased by 11 per cent over the last 12 months compared with a 19 per cent fall in the value of owner occupier commitments.
Going forward, Mr Lawless said the industry is likely to see some rebalancing of these two broad market segments.
“I wouldn’t be surprised if first home buyer volumes pick up modestly over the coming months thanks to improving economic conditions and strong employment,” he said
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Tags: first home buyer, First home buyers, national research director, property advocates, rp data
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