First-homeowner grants dive in SA
January 16, 2012PAYMENTS of the first-homeowner grant have fallen 20 per cent in the past year as banks tighten lending.
Government figures released to The Advertiser show 6562 first-home grants were paid between December 2010 and November 2011, compared with 8135 in the same period the previous year.
The most popular areas for first-home buyers are in Adelaide’s outer northern and southern suburbs, including Paralowie and Morphett Vale.
Finance Minister Michael O’Brien said the foreshadowed axing of Federal Government first-home buyer support caused a rush in 2010.
“There was a reasonable `pull forward’ effect where people made purchase decisions that they may otherwise have deferred,” Mr O’Brien said.
“There is also general softness in the housing market (currently) which is reflected nationally in construction starts and a general fallback in property values.
“What we’re seeing in SA is pretty well mirrored in the other states.”
In this year’s Budget, the State Government announced it would cut its $8000 first home bonus grant by July 1, 2013.
Real Estate Institute of South Australia president Greg Moulton said the drop in first-home purchases was larger than the cutback in activity across the general market.
“Affordability is one issue (for first-home buyers) and banks are getting tougher with their lending criteria,” he said.
“Stamp duty is just ridiculous. If I was a state government I’d be looking at other ways to get money.
“It’s a hell of a slug for people trying to save a deposit and buy a home.”
Mr Moulton said conditions for buyers would improve in 2012 as interest rates were forecast to be further cut.
The first half of next year would be the best time to enter the market as sellers had reduced their prices to meet a wary market, he said.
Figures show the number of first-home sales increased in the second half of this year after bottoming out at 456 in April.
The Housing Industry Association says releasing new land would bring down prices and help first buyers.
Opposition finance spokesman Rob Lucas said the state tax regime was one of the highest in the nation and high stamp duty costs made it hard to attract and keep young people in Adelaide.
Source: Adelaide Now
