The percentage of first home buyers in the owner-occupier market has plunged to the lowest level in a quarter of a century, a new report has revealed.
The number of Australian first home buyers decreased by 6.7 per cent to 21,825 during the September quarter, according to Adelaide Bank general manager Damian Percy, citing the Adelaide Bank and Real Estate Institute of Australia Housing Affordability Report.
That is a decline of 5.8 per cent compared to the September quarter 2015 and the lowest figure recorded since ABS records began in June 1991, Mr Percy said.
“To give this some sense of perspective, the number of first home buyers for the quarter has dwindled to a figure now equivalent to the number of lions believed to be left in the wild,” he said.
The average loan size for first home buyers increased by 1.5 per cent over the September quarter, while the percentage of current median family income required to make average loan repayments was 29.5 per cent.
At the same time last year, the average loan size was 0.4 per cent less and the percentage of income required was 2.2 per cent lower.
Since last year, there was also a 5.3 per cent decline in total number of loans, excluding refinancing, down to 105,314.
It wasn’t all bad news. All states, except South Australia, recorded a rise in rental affordability over the quarter.
There was no change in the best states to rent. NSW remained the least affordable, while the ACT was the most affordable.
[Related: Stats point to 'collapsing' FHB market]