Owner-occupiers pulling back in the housing market

A continued slide in lending to owner-occupiers makes clear constraints in housing markets are taking effect, according to the Property Council.

New ABS data released today shows the value of total housing commitments fell by 1 percent in August in seasonal terms – but was led by a 1.6 percent fall among owner-occupiers.

“We have previously seen housing approvals tail off and we are now witnessing owner-occupiers pull back,” said the Property Council’s Chief of Policy and Housing Glenn Byres.

“The slide in owner-occupier financing has been occurring for over a year – and there is no substantial offset coming from investor-led commitments.

“It suggests the underlying woes of housing affordability are causing potential owners to baulk and biting harder than ever. Without the right action from government, things will get worse.

“Dysfunctional planning systems, excessive red tape, high property taxes and new foreign investor charges are all adding to the problem of producing sufficient stock at the right price.

“We need a new focus from government on real solutions to the barriers faced by people wanting to buy their own home, particularly first-time purchasers.”

Media contact:  Glenn Byres  |  M 0419 695 435 |   E  gbyres@propertycouncil.com.au