First home buyer sales slump but market share high

While just over 3,250 houses were sold to FHBs in the first quarter of this year, their market share at 25% is on par with previous record highs and well above the long-term average of 21-22%, CoreLogic’s latest First Home Buyers report says.

“Even if the downturn in prices does end in the second half of this year, we doubt that the market is going to boom again straight away – especially if caps on debt to income ratios are imposed in March or April next year, which now looks almost certain,” Kelvin Davidson, CoreLogic’s chief property economist says. 

“With the housing market in the low phase of the cycle, sales activity has been subdued as buyers are held back by higher mortgage rates and credit constraints.”

The report shows market conditions impacting all buyer groups, but FHBs held on relatively well by optimising the weaker conditions.