First Home Buyer Loans Reach Decade High
- intouch Magazine
- Feb 28, 2020
- 2 min read
“December 2019 saw the volume of First Home Buyer home loans surge to their highest level since late 2009 according to ABS data out last month,” Master Builders Chief Economist Shane Garrett said. During December, the volume of home loans to First Home Buyers increased by 6.2% in seasonally-adjusted terms to record a monthly total of 9,606. The last time a higher monthly total was recorded was exactly ten years ago back in December 2009.
“The good news is that First Home Buyer activity has stepped up even further since the start of this year. The new First Home Loan Deposit Scheme is already a big success and the official data will show more big gains for First Home Buyer once they are released,” said Garrett.
“Apart from First Home Buyers, these figures show that other areas of the housing market are also recovering well. Housing investor loans expanded for the third consecutive month and hit a 14-month high during December,” he said.
“There is a great opportunity for people to buy or build their first home at the moment. Apart from the assistance offered by the new First Home Loan Deposit Scheme, interest rates are at their lowest in many decades and house prices have stabilised after dropping back from the highs reached in recent years.”
During December 2019, the First Home Buyer share of the owner-occupier market was highest in Western Australia (43.2%) followed by Victoria (40.9%), the Northern Territory (38.4%) and the ACT (32.6%).
The FHB market share was lowest in South Australia (25.7%), followed by Tasmania (27.6%) and New South Wales (30.5%). In Queensland, First Home Buyers account for 31.4% of the market.
