The latest home market numbers have revealed a new surge in first home buyers who are returning to the market due to enhanced stamp duty concessions in New South Wales and Victoria.
HIA Principal Economist Tim Reardon said first home buyers increased their share of the market from 8.8 per cent to 11.5 per cent in just one month based on the most recent ABS finance figures.
“The NSW and Victorian Governments announced incentives to encourage first home buyers in to the market that took effect from 1 July 2017,” he said.
Once the concessions took effect in their first month, the volume of first home buyers in NSW reportedly jumped to its highest level since 2012.
“New first home buyer incentives in Victoria have pushed the number of first home buyer loans up by 18.8 per cent compared to a year earlier and to their highest level in 4 years,” Reardon said.
“These policy interventions have driven a dramatic increase in the involvement of First Home buyers in the market.
“Government policy decisions drive consumer behaviour in the housing market. Improvements to First Home Buyer incentives have provided a significant impact on the market.
“Unfortunately, an increase in regulatory restrictions and punitive taxes have resulted in a 3.9 per cent reduction in investor lending, which remains an aspect of the market for monitoring,” he said.