Victoria Real Estate Figures - First Five Months 2010

The first five months of 2010 are now completed and the auction market has delivered some remarkable outcomes.

In February and March, the first two months in which a substantial number of auctions are held, the market exhibited record results. In February there were 2286 auctions, of which 85.6 per cent sold. In March there were 2931 auctions and the same clearance rate was recorded. This makes it the equal-fourth-strongest month for auctions in the city’s history, exceeded only by September 1999 (86 per cent), May 2007 (85.7 per cent) and July 2007 (86.5 per cent).

First Home Buyers a Dying Breed

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) 

 

For information on Growth Strategies to strengthen your Real Estate Business, visit Rema at www.rema.net.au.