Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, a must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of Australia's finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts, the most comprehensive analyst I follow in Australia' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

'Superlative work' - Grant Williams, founder RealVision.

Friday, 9 June 2017

Tough times for first homebuyers

Tighter regs

Housing finance was still pretty strong in April, but down a little to $32.5 billion.

Investor loans showed some signs of easing in the face of regulatory pressures, declining from $12.8 billion to $12.6 billion in the month. 

Not too surprisingly some of the decline has been experienced in Queensland, with the state temporarily suffering from some severe weather and flooding from the end of March.

Owner-occupier activity was solid enough in the two most populous states, but remains in a downtrend in Western Australia. 

Tighter serviceability criteria are making life hard for first homebuyers, with the average loan size for first-timers declining over the past 13 months to an annual average of $318,200. 

Non-first homebuyers are now finding ways to leverage their equity, however, with the average size of their loans increasing to new high annual average of $373,400, despite recent curbs. 

Next up, I'll look at where investors are buying.