NO LAST MINUTE RUSH FOR FIRST HOME GRANTS – SEPTEMBER MORTGAGE FIGURES
Despite first home buyer grants being reduced at the end of last month, there was no last minute rush by first home buyers to buy property in September according to AFG, Australia’s largest mortgage broker. AFG Mortgage Index shows that loans to first home buyers actually fell slightly from 20.9% in August to 20.0% of all new mortgages arranged in September – a figure in line with the previous three month’s sales, and well below the peak of 28.1% recorded for first home buyers in March 2009.
Mark Hewitt, General Manager of Sales and Operations says: ‘There was a lot of anticipation about a surge of first home buying activity in September – but this never materialised. It suggests that most of the demand had already been pulled forward as a result of speculation prior to the federal budget that the increased grants would not continue.’
AFG Mortgage Index also shows that the average mortgage reached $360,000 for the first time ever in September. AFG reported the previous record high of $354,000 as recently as July. The additional rise last month supports the view that both consumer confidence, as well as house prices, are on the rise.
AFG Mortgage Index shows an upturn in investment loans from 27.1% in August to 29.8% in September. Having spent most of the first half of 2009 well below the long term average of around 30%, this latest figure confirms returning confidence among property investors.
Property investment in NSW was head and shoulders above the rest of the country in September, with a massive 33.4% of all new loans arranged for investors. This figure compares with 29.6% for Queensland, 28.0% for WA, 27.9% for Victoria and 26.9% for South Australia.
Download – October Mortgage Index – National
