First homebuyer numbers to pick up in 2013
First homebuyer numbers to pick up in 2013
Posted on Monday, February 18 2013 at 8:53 AM
More first homebuyers are expected to enter the market in 2013, after subdued results for 2012, according to RP Data.
Research analyst
Cameron Kusher says there were 97,672 housing commitments by first homebuyers in
2012 and although the number was 4.9 per cent higher than in 2011, the result
was “disappointing” when considering the interest rate cuts.
“Given that the
impact of mortgage rate cuts takes time to filter through to the market, we
expect that first homebuyer finance commitments will be stronger throughout
2013,” he says.
“The delayed
impact of cuts to mortgage rates is highlighted by a slightly greater number of
first homebuyer commitments through the second half of the year than the first.
“Given a rise in
home values of the second half of 2012 and the prospect of further mortgage
rate cuts in 2013, these conditions bode well for a further increase in first
homebuyer activity. As to what extent first homebuyer activity increases
remains to be seen, however we anticipate that any further increase is likely
to be fairly moderate.”
On a
month-to-month basis in 2012, first homebuyer finance commitments were
strongest across the following months:
– October (9215)
– May (9110)
– August (8921).
In October, standard
variable mortgage rates were reduced by an average of 20 basis points and in
May they fell by an average of 35 basis points.
“Clearly the
falls in variable mortgage rates over these months resulted in an increase in
activity by first homebuyers. On the other hand, first homebuyer activity
tapered off significantly over the final two months of the year, despite a
further cut to mortgage rates in November.”
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