homes decline<\/a>.<\/p>\n\u201cThere\u2019s never been a better time to be a first-time buyer,\u201d Ms Plibersek said.<\/p>\n
\u201cNot in my lifetime has there been a better time to be a first homebuyer in Australia.\u201d<\/p>\n
Ms Plibersek was speaking after new data revealed that an increasing number of high income earners are accessing the 5 per cent deposit scheme after income means testing was removed.<\/p>\n
\u201cI\u2019m so happy to see more than 260,000 individuals and couples have made use of our 5 per cent deposit,\u201d Ms Plibersek said.<\/p>\n
\u201cThat means probably a quarter of a million households or more that would not be in a home of their own if it wasn\u2019t for the backing that we\u2019re giving first home buyers.\u201d<\/p>\n
Barr then observed that the problem was that house prices at the top end were falling in some states and entry-level homes were going up.<\/p>\n
\u201cSydney, Melbourne and now Brisbane is falling. Is that what you wanted?\u201d Barr asked.<\/p>\n
\u201cWell, we want people in a home of their own. And that\u2019s what we\u2019re seeing,\u201d Ms Plibersek responded.<\/p>\n
\u201cWe\u2019re seeing at auctions right across Australia first home buyers bidding for a home of their own and I think that is fantastic. You know how hard it is to save a 20 per cent deposit if you\u2019re paying rent in Sydney? It was impossible.<\/p>\n
\u201cWe were locking people out of the housing market. Now they\u2019ve got a shot at doing what their parents and their grandparents took for granted. I think that\u2019s amazing.<\/p>\n
\u201cAnd I think there\u2019s a generation of young Australians who are feeling this enormous sense of relief.\u201d<\/p>\n
\u201cAnd now the market\u2019s going down,\u201d Barr interjected.<\/p>\n
\u201cAs a government we\u2019re keeping that promise. Well, you know Nat, you know what?\u2019\u2019 Ms Plibersek said.<\/p>\n
\u201cYou\u2019re talking about tiny movement.\u201d<\/p>\n
Nationals leader Matt Canavan said that \u201ctiny movement\u201d was going to see people who bought a home with just 5 per cent equity go backwards.<\/p>\n
\u201cTake a deep breath. You know, people buy a house, they keep it for seven years, 10 years, for 30 years,\u201d Ms Plibersek said.<\/p>\n
\u201cYou know what? If you\u2019re a first homebuyer, this is the time that finally we have kept our promise to you as a nation that you will have a piece of our prosperity as a nation.\u201d<\/p>\n
Mr Canavan said the comments were an example of \u201cwhy this government is so out of touch with people\u201d.<\/p>\n
\u201cBecause that\u2019s not what I hear from young people. Inflation is through the roof,\u201d he said.<\/p>\n
\u201cInflation is the highest in the developed world. Our interest rates have been the highest in the developed world. How in the hell can you sit there and say this is the best time to be a first homebuyer? Economic conditions are very tough for people.<\/p>\n
\u201cHouses aren\u2019t even selling. No one benefits if no homes are being sold or very few are being sold, first home buyers included.\u201d<\/p>\n
Speaking on ABC Radio, Treasurer Jim Chalmers was asked about new data from Cotality showing prices fell by 0.7 per cent nationwide in July. <\/p>\n
\u201cWell, the budget assumptions were that over the course of the next couple of years we will see prices continue to grow, but a bit more modestly than they have been,\u201d the Treasurer said.<\/p>\n
\u201cThere\u2019s a whole range of factors playing out in the housing market. Interest rate movements earlier this year, higher fuel costs that we\u2019ve been talking about, the hit to confidence from the war in the Middle East, as well as changes in the budget. And so all of those things together are playing a role here, not just one factor or another.<\/p>\n
\u201cIt\u2019s not uncommon to see prices come off in this fashion. If you look over the past couple of decades, even if we\u2019ve had over that period a period of extraordinary price growth.<\/p>\n
\u201cHousing is a long-term investment. People don\u2019t make investments in housing from day to day or week to week, month to month, and so from time to time you will see movements in prices like these.\u201d<\/p>\n
House prices are falling in Sydney, Melbourne and Canberra as the market confronts the perfect storm of rising interest rates and the Albanese Government\u2019s crackdown on landlords\u2019 tax breaks.<\/p>\n
Despite Treasury predictions that the reforms will only contribute to a 2 per cent reduction in house prices over the next few years, Cotality\u2019s Home Value Index has found that prices fell by 1 per cent in Sydney and Melbourne in the month of June alone.<\/p>\n
\u201cThe downward revision reflects a market that is changing rapidly,\u201d said Cotality research director Tim Lawless.<\/p>\n
\u201cMost regions have seen values revise lower over recent months, with the largest downgrades occurring in Perth and Brisbane.<\/p>\n
\u201cHigher cost-of-living pressures, deeply pessimistic sentiment and a further dampening of demand via property taxation changes announced in the federal budget are all contributing to weaker housing conditions.\u201d<\/p>\n
Asked how much of that drop could be attributed to the budget changes, Mr Lawless said it was a complex question.<\/p>\n
\u201cThe reality is that it is impossible to segregate the influence of the budget from other factors impacting the market,\u201d Mr Lawless told news.com.au.<\/p>\n
\u201cWe are in an unusual situation where there are a multitude of factors at play.<\/p>\n
\u201cAffordability and serviceability constraints are rife, interest rates are elevated against a backdrop of a heavily indebted household sector, confidence is holding in deeply pessimistic territory, and now we have some downwards influence on demand from the federal budget.<\/p>\n
\u201cHousing conditions were already weakening well before the budget, with Sydney and Melbourne home values falling before May 12 while the mid-sized capitals were clearly losing momentum.<\/p>\n
\u201cWe are expecting investment demand will reduce sharply due to the budget changes to negative gearing and capital gains tax.\u201d<\/p>\n
In Sydney, prices are now down by 3.2 per cent in the last quarter and by 2.6 per cent in Melbourne after being largely flat over the last year.<\/p>\n
By comparison, prices were largely flat in Brisbane, but that result was off the back of a whopping 17.4 per cent increase in the last year.<\/p>\n
However, the real impact is still unfolding as investors react to the changed conditions.<\/p>\n
\u201cHousing outcomes over the coming years will depend a lot on macro factors like the path of inflation and interest rates, as well as how active investors are or aren\u2019t, and also the participation from first home buyers and other segments of the market,\u201d Mr Lawless said.<\/p>\n
Auction clearance rates in Sydney have also fallen to the lowest since April 2020, and have fallen in Melbourne to 2021 Covid lockdowns levels.<\/p>\n","protected":false},"excerpt":{"rendered":"Labor frontbencher Tanya Plibersek has declared there\u2019s \u201cnever been a better time\u201d to be a first-home buyer 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