Australian Property News
First homebuyer numbers to pick up in 2013
Posted on Monday, February 18 2013 at 8:53 AM
More first homebuyers are expected to enter the market in 2013, after subdued results for 2012, according to RP Data.
Research analyst Cameron Kusher says there were 97,672 housing commitments by first homebuyers in 2012 and although the number was 4.9 per cent higher than in 2011, the result was “disappointing” when considering the interest rate cuts.
“Given that the impact of mortgage rate cuts takes time to filter through to the market, we expect that first homebuyer finance commitments will be stronger throughout 2013,” he says.
“The delayed impact of cuts to mortgage rates is highlighted by a slightly greater number of first homebuyer commitments through the second half of the year than the first.
“Given a rise in home values of the second half of 2012 and the prospect of further mortgage rate cuts in 2013, these conditions bode well for a further increase in first homebuyer activity. As to what extent first homebuyer activity increases remains to be seen, however we anticipate that any further increase is likely to be fairly moderate.”
On a month-to-month basis in 2012, first homebuyer finance commitments were strongest across the following months:
- October (9215)
- May (9110)
- August (8921).
In October, standard variable mortgage rates were reduced by an average of 20 basis points and in May they fell by an average of 35 basis points.
“Clearly the falls in variable mortgage rates over these months resulted in an increase in activity by first homebuyers. On the other hand, first homebuyer activity tapered off significantly over the final two months of the year, despite a further cut to mortgage rates in November.”
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