Australia is enjoying a return to higher consumer confidence according to the latest ABS finance data from May released last week, which has revealed that home buyer activity has increased as a whole across New South Wales, with first home buyer activity posting the highest results over the month.

The extremely positive result suggests that buyer confidence especially amongst first home buyers is increasing month on month, especially since the Reserve Bank cut the official interest rate from 1.5% to a new record low of 1.25% at its June meeting and again in July to 1%. These cuts mark the first change to interest rates since August 2016 and have been welcome news to home buyers and property investors.

However, in terms of First Home Buyers, the ABS data revealed the following points to be the reasons behind the increase in buyer activity amongst the segment:

• Price falls – first home buyers seem to be happier post a softer market; this may be because they have been able to take a little bit more time in their decision making, however now the property market is on the upswing, are now ready to purchase.
• First home buyer incentives – who doesn’t love free cash? First home buyers are no different and they respond positively to Government incentives to get them into the market. The most significant result has been recorded in NSW.
• Access to finance has become more difficult but first home buyers are still seen as a safe bet – for banks, first home buyers are seen as a relatively safe group to lend to. They are generally young, early in their career, often two incomes and they have a very long time to pay off a loan. They are also future repeat customers. The main challenge for first home buyers would be the scrutiny on their spending (like everyone), but they are finding it easier than other investors.
• First home buyers are unlikely to abandon the market in the near future, especially with the influx of both government and developer reduced deposit schemes, making it easier for first home buyers to get a deposit together.

So, with the continual increase in buyer activity in New South Wales and positive commentary from industry experts regarding the upswing of the market as a whole, it is a perfect time to contact our friendly customer service team at sales@menanglepark.com.au or drop by our sales centre at Macarthur Square (opposite Coles) for information on land available to suit all lifestyle requirements.