‘Fair go’ reforms backfire as first-home buyer activity plunges

First-home buyer activity has fallen over the past year. First-home buyer activity has plunged to a four-year low across the housing market in the latest sign that the Albanese government’s promise to address intergenerational inequity in the May budget may be delivering mixed results. New Equifax figures have revealed demand for mortgages among first-home buyers dropped by 20 per cent over the year to August. It was the largest fall in first-home buyer demand since 2022 – back when the country was in the thick of the steepest rise in interest rates in nearly 30 years. Equifax chief solutions officer Kevin James said consumers appeared to be apprehensive about taking out new loans. “Younger Australians continue to be the most impacted amid current market conditions and cost of living constraints,” Mr James said. MORE: Worst in Sydney: 31pct price crash hits popular suburb Equifax data revealed the biggest drop in first homebuyer loans since 2022. “While overall mortgage demand remains down at -14.1 per cent year-on-year, it is positive in some respects to see it has not continued its downward trajectory from the past few months and has softened slightly. “However the same cannot be...