In a finding that is not at all surprising, the latest CoreLogic RP Data Property Pulse report has stated that first home buyers “have continued to languish at near record levels”. New lending to first time buyers has dipped to the lowest levels since 2008 in every state and territory in the country.
In Queensland, new lending fell by a huge 37.5 percent in March compared to December 2008. The national fall clocked in at 30.3 percent.
Data analyst for CoreLogic RP Data Cameron Kusher says that with the rapid rising of property prices, lending values should also be rising.
“The fall in the value highlights just how low the level of activity from first home buyers is currently,” he said.
He places part of the blame on those who already own property, warning that those looking to enter the market would “struggle to compete with investors and upgraders who have been active in the market and where significant equity has been acquired”.
In other words, we’re being outbid by cashed up investors. But that’s not exactly anything new.
Investor lending rose by 52.2 percent in March when compared to December 2008 and existing homeowner lending across the country grew by an insane 84 percent.
Mr Kusher says the simplest answer for first homebuyers was to buy outside of major cities, but weak employment in these areas doesn’t make it an enticing prospect at all.
All eyes will be on the federal election and each party’s response to housing affordability, but whether anyone is ballsy enough to implement any significant change is another question altogether. The saddest part is that many, like myself, have accepted a life of perpetual renting, and we’re weirdly ok with it.
And unless we want to dial back on our lifestyle a lot, we don’t really have any other choice.