Monthly Archives: December 2010

First home buyers give up

It looks like first home buyers in NSW have given up:

FIRST-homebuyers abandoned hope of snapping up a house during 2010 – with new figures revealing applications for Government hand-outs dropped by two thirds.

Eligible buyers backed away as the Federal Government wound down its grants. After claiming $1 billion in grants in 2009, the numbers dropped Australia-wide this year.

In 2009, an average 19,000 first-homebuyers a month took advantage of the grants, while this year the figure fell as low as 7460 a month, according to ABS statistics.

Note that despite the article’s misleading headline, it’s not prices that have fallen. Investors still have plenty of equity to leverage, and plenty of discouraged would-have-been homebuyers to rent to.

UPDATE (1/1): The ABC does another of its pathetic “journalism by press release” stories, giving an entire article to the Real Estate Institute’s self-interested claims that it’s “potential rate rises” that are “scaring off” first home buyers – rather than the ridiculously inflated market.

UPDATE #2 (1/1): In its list of “winners” and “losers” in 2010, The Age includes as “losers”:

HOME OWNERS: Hit by four interest rate rises totalling one percentage point, then additionally slugged when the big four banks increased rates above and beyond the Reserve Bank’s cash rate rise in November.

Typical for The Age, the plight of the people it only just yesterday reported were no longer able to buy a home of their own doesn’t even occur to it.