The number of first home buyers fell by 12.6% over the September quarter of 2021 due to fears about rising interest rates, rising living costs and a lack of listing driving prices up in capital cities.

Real Estate Institute of Australia (REIA) has highlighted the importance of Australia’s 9 trillion-dollar residential real estate market to Government and Opposition in its Annual Advocacy Tour.

“We had very productive meetings with Minister for Housing Michael Sukkar MP to discuss how to increase home ownership, address housing affordability concerns. When meeting the Chair of the Standing Committee on Tax and Revenue, Jason Falinski, discussion focused on the importance of unlocking further housing supply in this phase of the COVID-19 pandemic.

“We also met with Shadow Treasurer, Dr Jim Chalmers and Shadow Housing Minister the Hon Jason Clare MP on key issues affecting the housing market.”

Mr Groves said it was positive that for the first time in over six years negative gearing and CGT settings will go into the Federal Election with support from both major parties.

“The lead up to Federal Election periods are usually a time when Australians have less confidence to offer their properties for sale or enter into any new property transactions.

“With no changes to negative gearing or CGT proposed by either party, Australians should list, buy and rent with confidence.

“With the latest possible date to hold the Federal Election by Saturday 21 May 2022, REIA has met with leaders to raise awareness of key issues for real estate agencies and property customers.

“Residential real estate is the largest place where Australian’s wealth is stored and this is obviously a critical issue every Federal Election,” he said.

Mr Groves said that with inflationary measures rising, house price growth and record low vacancy rates across the country it is important that the health of private property markets is front and centre of decision making.

“Average loan sizes have increased to $570,000 while the weighted average median house price for the eight capital cities increased to $961,059 over the year to September 2021.

“REIA is particularly supportive of the very successful First Home Loan Deposit Scheme that has allowed up to 60,000 Australians to buy their first home.

Mr Groves said that as real estate agents, we want all Australians to win in real estate.

“Recent surveys of the industry show that key issues influencing their vote are the economy, small business interest, climate change and the environment, defense and national security and of course housing affordability.

“These are all critical programs of work in REIA’s Getting Real.

“As agents, we want solutions for everyone within the real estate market when it comes to both supply and affordability, and we seek commitments from all parties to unlock both supply and affordability over 2022.

“Residential real estate is where most of Australian’s wealth is stored and needs to be a critical consideration for all policy-makers.”

Further information can be found at Momentum Intelligence’s Industry Insight Report: Election Edition.