There are signs that buyers are being drawn back into the housing market by a positive outlook on the industry and the incentive of tax cuts, according to the latest report from the Australian Bureau of Statistics (ABS).
Housing finance figures from March show a trend among owner-occupied finance commitments for real estate in Australia rising by 0.7 per cent – after increases of 0.2 per cent and 0.5 per cent in January and February, respectively.
Real Estate Institute of Australia president Peter Bushby said the increases were recorded in New South Wales, Victoria, Queensland and Western Australia. Real estate in the Australian Capital Territory had the largest increase of 1.6 per cent.
The purchase of new dwellings rose by 2.9 per cent while commitments to the construction of new dwellings increased by 1.6 per cent. The purchase of existing dwellings rose by 0.4 per cent.
Mr Bushby went on to say that the rate of first home buyers in owner-occupied commitments dropped to 14.2 per cent – lower than the long-run average of 20.1 per cent and the lowest in over eight years.
“In large part, this drop can be attributed to some state governments withdrawing previous levels of support for first home owners buying existing dwellings,” he said.
The value of investment housing also rose by 1.4 per cent over March – the tenth consecutive monthly increase