Victorian first-home buyers reach 2-year high. Numbers have surged to their highest level since 2022.
Australian Bureau of Statistics data shows 3,556 new buyers committed to mortgages in July. This brought the state total to 39,336.
It’s the highest number since 39,688 recorded in December 2022. That year, the Reserve Bank’s rate hikes sidelined many buyers.
Their numbers declined after peaking at 53,718 in August 2021.
The decline worsened following the May 2022 rate hike.
Victorian first-home Recovery started after August last year, with numbers bottoming out at 34,492.
PropTrack economist Anne Flaherty predicts first-home buyers will drive sales and gain influence this spring.
Ms. Flaherty attributed the rise to investors selling off properties.
“They often compete for similar properties, so more listings create opportunities for Victorian first-home buyers,” the economist said.
Home prices might gently decline in Melbourne and Victoria this spring, potentially boosting Victorian first-home buyer activity, she noted.
However, she doubted Victorian first-home buyer numbers would return to 2021 levels without significant government policy changes.
In 2021, Victorian first-home buyers benefited from record-low interest rates and incentives like the $25,000 HomeBuilder scheme.
Oxford Economics Australia’s Maree Kilroy said flat home prices have encouraged Victorian first-home buyers back into the market.
With wage growth and tax breaks, many buyers are now in a better position than earlier this year.
Landlord purchases in Victoria fell to $2.45 billion in July, with Queensland’s $2.53 billion surpassing it for the first time since 2008.
Ray White Victoria’s chief executive, Domenic Belfiore, reported an influx of first-home buyers, especially in growth corridors.
Mr. Belfiore noted strong inspection numbers and anticipated more activity, with buyers confident after six months of house hunting.
Australian Property Home Loans director Adele Andrews observed a significant increase in first-home buyers entering the market this year.
Ms. Andrews noted that prospective Victorian first-home buyers have adjusted to higher living costs and the current interest rate environment.
“People have adapted to these changes and possibly readjusted their expectations about what Victorian first-home buyers can get,” she said.
She added that many Victorian first-home buyers, frustrated after 12 to 18 months of waiting, are eager to buy now.
A lot of Victorian first-home buyers are also seeking to escape renting or living with their parents, Ms. Andrews mentioned.
