The number of owner-occupiers taking out home loans jumped 1.5 per cent in July, but fewer of them were first-home buyers.
Australian Bureau of Statistics data shows the number of first-home buyers remains low and decreased by 4.4 per cent during July. The proportion of first-time buyers in the market is now the lowest for more than six years.
More bad news for this group came in this week’s state budget, with the announcement of the end of the stamp duty concession for established-house purchases from January 1.
Other housing market budget initiatives include expanding the Home Builders Bonus, meaning people aged 55 and over who build a new residence that costs less than $600,000 won’t pay stamp duty, though they have only to July 1 next year to do it.
Previously, the policy applied only to those older than 65. The government will release 10,000 blocks for housing in the next four years.
Though the Reserve Bank left interest rates on hold this week, expectations of a rise have increased after the latest release of gross domestic product data by the ABS.
With Australia’s economy growing a stronger-than-expected 1.2 per cent during the June quarter, the prospect of inflationary pressures could alert the RBA to the possible need to raise interest rates.
The most expensive house reported sold this week was 11 Fitzwilliam Road in Vaucluse. The six-bedroom house was sold after auction for $6,005,000 through Bradfield & Prichard and Raine & Horne Double Bay.
The dearest apartment reported sold was a three-bedroom property at 23/95 Milson Road in Cremorne Point. It sold before auction through McGrath for $1.28 million.
Dr Andrew Wilson, Senior economist, Australian Property Monitors.