The latest housing finance figures released by the Australian Bureau of Statistics show that lending for property is growing in response to interest rate cuts, however according to the Real Estate Institute of Australia (REIA) more needs to be done to attract first-time buyers to the market.
In June 2013 the number of owner-occupied finance commitments rose by 1.9 per cent, slightly lower than figures for April and May.
REIA president, Peter Bushby said that while the outlook for the market was positive, the government needs to better encourage first-time buyers to gain their first foot on the housing ladder.
Mr Bushby explained: "The proportion of first home buyers in the number of owner-occupied housing finance commitments rose slightly to 15.1 per cent compared to the May figure of 14.6 per cent. The figure remains persistently low compared to the long-run average proportion of 20.1 per cent despite seven interest rate cuts since November 2011."
Posted by Steve Douglas