REIA: Stabilisation in property markets

The-housing-sectors-in-Sydney-and-across-Australia-have-come-to-the-attention-of-key-industry-bodies_157_70350_0_14099338_300The housing market is stabilising, according to the Real Estate Institute of Australia (REIA).

This could open up opportunities for first time buyers in Sydney in coming months, though it could be some time before the market is more receptive to those looking to get their first leg up on the property ladder.

Owner-occupied housing finance figures released

The Australian Bureau of Statistics recently released data relating to housing finance, which noted a 0.1 per cent increase between February and March, in trend terms, of the value of owner-occupied housing finance.

However, the REIA noted that the actual number of owner-occupied housing finance commitments dipped by 0.1 per cent.

The stabilisation of the market has been noted by REIA President Peter Bushby, who also made note of the kind of buyers currently in the market.

“The proportion of first home buyers in the number of owner-occupied housing finance commitments increased marginally to 12.6 per cent compared to 12.5 per cent in February and the low point of 12.3 per cent in November 2013,” Mr Bushby explained in a May 13 release.

“This is still dramatically lower than the long-run average proportion of 19.9 per cent and continues to be of concern.”

Whether or not first home buyers manage to regain their strength in the property market is yet to be seen, though the issue is certainly at the heart of the Reserve Bank of Australia’s (RBA) focus.

Luci Ellis, Head of Financial Stability at the RBA, noted at an address in Sydney on May 15 that housing is at the forefront of the central bank’s collective mind.

Ms Ellis explained that considerable energy has been spent analysing the housing sectors and the potential risk on Australia’s financial stability.

Existing property owners in Sydney may find themselves in a good place and may consider selling while demand is still high for quality dwellings.

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