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Investors still backing away from property market

Investors still backing away from property market

Investors are backing away from the housing market while owner-occupiers are taking a bigger piece of the housing pie, according to the latest ABS Housing Finance figures.

In seasonally adjusted terms, the value of investment housing fell 1.3 per cent to $10 million, in the month between June and July 2018.

Meanwhile, the value of owner-occupied housing grew 1.3 per cent to $21 million in the same time frame.

Further, the number of dwelling commitments for owner-occupied housing grew 0.4 per cent to 52.6 million from June to July 2018 (in seasonally adjusted terms).

The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments also fell to 18.0 per cent in July 2018 from 18.1 per cent in June 2018.

Comparatively, first home buyer commitments rose from 14.0 per cent in June 2017 to 15.0 per cent in July 2017.

The ABS noted that the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments “recorded strong growth from July 2017 to November 2017” as a result of changes to first home buyer incentive programs in New South Wales and Victoria.

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

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