FHBs hit market in 2014
There will be a 21 per cent increase in first home buyers (FHBs) in 2014, according to research conducted by LJ Hooker.
The novice home purchasers will be influenced by continued affordability including record low interest rates, according to the report First Home Buyers; A Dynamic and Changing Market.
The enthusiasm from first home buyers will enable current owner-occupiers the opportunity to upgrade to their second or third home to better suit their current lifestyle.
LJ Hooker’s Research Manager Eric Barnes says, “First home buyers – along with investors – underpin the market’s momentum of transactions so are an essential component of the real estate cycle.
“By introducing new capital into the market, they enable upgraders to transact.’’
LJ Hooker estimates 110,300 FHBs are looking to make their first real estate purchase in 2014 – a marked increase from 90,551 this year.
The anticipated number of FHBs expected to enter the market this year are:
Victoria 30,000 SA 7,500
NSW 26,000 ACT 1,900
WA 22,000 TAS 1,800
QLD 20,000 NT 1,100
Mr Barnes added many Generation Y Australians who were cashed up and established in their careers were now looking to buy.
“Typically these FHBs are well educated, tech savvy and market informed with a taste for quality housing,” he said.
“Some will be stay-at-home investors living with their parents and building equity through property investment prior to moving out.
“There is the real likelihood that these Gen Y buyers will leapfrog earlier generations in wealth terms – benefiting from property’s inherent compounding growth by entering the market at an early age.”
LJ Hooker’s research indicated an increase in the number of FHBs scheduled for next year.
Mr Barnes said at the end of the day, FHBs set the foundation for a stable society, since their livelihoods and their lives were “invested in people and places”.
“For everyone though, buying their first home represents their single most significant purchase – a grounding, character building experience worthy of the effort.”