Home loans for first-timers inflating property market
The size of the average home loan snagged by first-home buyers has increased nearly a quarter (23 per cent) in the last two years, leading some experts to warn that the housing market is being inflated.
According to official figures cited by the Australian, the value of the average home loan for first-time buyers increased $11,400 in the three months up to February 2009, following on from rises of $18,100 in the previous quarter.
Speaking to the paper, Brandmanagement’s principal Andrew Inwood said he was worried that the government’s first home buyers grants and the RBA’s historically low interest rates were simply creating a housing bubble as the value of properties has shot up with the size of the loans.
However, buyers received a boost from treasurer Wayne Swan earlier this month as he used the budget to confirm that the first-home buyers grant would be extended beyond the June 30th deadline.
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