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Agents are split on what’s scaring first home buyers from the market. First home buyers have not run the bank of mum and dad dry nor are they stubbornly refusing to enter the market. They want property, but not with the same hunger their parents did decades before.
What has changed is the attitude and behaviour of younger generations towards saving, investment, and living with mum and dad until they can afford something.
Chief executive of Starr Partners, Douglas Driscoll, said his own research shows first home buyers aren't necessarily as determined in buying as previous generations.
“There is a natural assumption first home buyers are being driven out of the market by investors," Mr Driscoll said.
"Although partly true, we also have to question the motivations of some of the young generations as they can be far more frivolous and less frugal than their parents. In a lot of instances first home buyers are struggling to save for a deposit so mum and dad are often lending a hand.
“The affordability factor is often about meeting monthly payments.”
Figures recently released from RP Data state only 6,054 first home buyers signed up for housing finance packages during August, the lowest month-on-month reading since June 2014. First home buyers are in record low numbers across New South Wales, Victoria, Queensland and the Australian Capital Territory.
Principal of Clarke & Humel Property, Michael Clarke, said the reason for the recent dip in first home buyer numbers is not due to laziness or disinterest, but the hard work they are doing saving up for a deposit.
Mr Clarke, joint winner of the Real Estate Business Top five Agents Award of 2014, said he has not come across any potential first home buyers who believes they will be renting forever.
“The first home buyers we have been selling to have focused for a long time to be in a position to buy and as a result, a couple will work hard, and are prepared to delay significant gratification to get their foot in the door,” Mr Clarke said.
“They are the ones where it is heartbreaking to see them lose out at auction… but for any of those that are successful, [they] are being assisted by the bank of mum and dad.”
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