Australian Bureau of Statistics (ABS) Housing Finance figures for March show that, in trend terms, the number of commitments for owner occupied homes fell by 4.1 per cent, compared to the previous month.
“This is the ninth consecutive month of falls in housing finance. We are now down to the levels of the global financial crisis in 2008”, said REIA President, Mr David Airey.
“The decreases in lending were across the whole spectrum of established and new dwellings and across all states and territories”, added Mr Airey.
The number of first home buyers, as a percentage of total owner occupied housing commitments, decreased to 16.1 per cent in March 2010, compared to 18.1 per cent in February. This is the lowest for some five years, and compares to the long-run average of 20.1 per cent.
“The rapid decline in the number of first home buyers is a major driver in the decline in overall finance commitments. Each month it looks more and more like first home buyers are a dying breed,” continued Mr Airey.
“It is time for the Reserve Bank to stop the spiral of continuing interest rate increases”, concluded Mr Airey.
Source: The Real Estate Institute of Australia (REIA)
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