Home Loans & Mortgages

Construction loans have fallen steeply over the past 9 months, inline with new home sales. Australian Bureau of Statistics [ABS] show that the number of new homes being constructed fell by 5.3 per cent in the fourth quarter, 4 times worse than economists were expecting. Single dwelling new homes were hit hardest. So it was felt as lower construction loans with mortgage brokers and banks everywhere.

In the US the average first home buyer is 44 and in Australia it was approaching 38 years old, but recently fell as a boost to the First Home Owners Grant spurred many young people to build new homes in 2009. Later figures are yet to be freely available, but I suspect that this has forced younger people into buying sooner and this would have meant that we are now in the zone wherehomebuyers are again creeping to 40 year old age bracket.
In the UK the figures in a survey showed 20% of potential first-time buyers expect to be 40 years old before they buy their first house.

Home buyers have to cope with the talk of interest rate rises by the RBA being seconded by the banks wanting to raise rates independently to improve their margins on home loans.
So whilst first home buyers may benefit may benefit from house price reductions, homebuyers who bought at the peak of housing prices are likely to feel the stress of higher mortgage repayments.

Why First homebuyers aren’t buying? Affordability!

During the last 10-year period, house prices have risen highest in Perth and Brisbane, where home prices for a new home have nearly trebled over the past decade. That is making homes unaffordable for first home buyers. Especially with talk of higher interest rates