First-home buyers were the biggest group of purchasers for the last three months, according to new property data, ending a decades-long trend.
According to the latest CoreLogic numbers, first-time home buyers made 27% of property purchases in August.
Meanwhile, relocating owner-occupiers, or movers, remained “quieter than normal”, sitting at 25%.
Mortgaged multiple property owners, including investors, remained “low by past standards” at 22%.
Speaking to Breakfast this morning, The Money Men financial adviser Josh Farry said the strong showing from first-time home buyers was because property investors and movers had been held back “for quite some time”.
He said high interest rates were the leading cause of the drive, and sellers not getting what they wanted out of a sale was another.
“They’ve been restricted at the moment just because they’re generally not achieving the prices they want to sell their properties for,” he said.
He said it would likely take a “few more” interest rate decreases before those groups became more active in the market again.
For first-home buyers, Farry said the market was in a bit of a “honeymoon period”.
“In August, there was a huge spike in investor inquiry across the country, for mortgage advisers anyway, and for mostly investors.
“They’re kind of there waiting to get started again, but it’s gonna be really good for first home buyers because it’s going to take a while for that to happen.”
He said falling interest rates were a sign the market was changing. He expected drops to come over the next few OCR announcements.
“So, first home buyers should make the most of the next six months,” he said.
Parry said movers were worried they may lose money when selling, which is why their share had dropped.
He said it was “a hard thing for people to get over” but was something sellers should consider in the long term.
“If I’m going to buy my next property and I’m going to buy something for $1.5 million, that property has gone down more than mine, so you’re still making a net gain.”
Parry said that once confidence came back to the market, people would start “sucking it up and get moving”.
“It’s returning, and it will be good again, but a little bit of time to go for now.”
