The four year retreat of first home buyers from market looks to have ended according to data released this week by the Australian Bureau of Statistics (ABS),  indicating that the long boom is either over or First Home Buyers (FHBs)  have drastically altered their purchase expectations.

According to Mr Simon Elwig, Head of Lending Research at CoreData Pty Ltd, the clues that the price boom may have topped out are clear in the latest ABS figures.

“The data is starting to show an uptick in the number of home loans being completed for first home buyers (FHBs) – which indicates the market is entering a new phase,” he said. [caption id="attachment_717" align="alignnone" width="600"]Graph indicating % of all dwellings in Mar ABS Financing Commitments March 2017[/caption]

Mr Elwig said that more interestingly – the amount being borrowed by FHBs was  broadly similar to the 2016 figure for March 2016, indicating  FHBs have either started to move to more affordable types of housing and in cheaper suburbs or that housing prices had flattened wherer they were buying.

The  data shows the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 13.6% in March 2017 from 12.9% in March 2016.

The data also reveals the five-year decline in FHB lending was arrested in the March quarter, indicating a change in market dynamics.