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More FHBs to infiltrate property market

investor-stories
1 minute read

More FHBs to infiltrate property market

by Emma Ryan 10 September 2019 1 minute read

The number of first home buyers taking out a loan has increased over the past three months, with more looking to take advantage of the current housing climate, according to new research.

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September 10, 2019

The ABS has released the Lending to Households and Businesses data for July 2019, pinpointing a surge in first home buyer loans.

According to the data, the number of loans to first home buyers was up by 1.3 per cent for the month of July and 4.0 per cent for the three months to July.

“First home buyers are continuing to take advantage of a less competitive environment and more affordable house prices,” said HIA economist Angela Lillicrap, commenting on the results.

“First home buyers account for just under one-third of the total market, the continued growth of this segment is important for the broader housing market.

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“Market confidence is slowly returning, with lending to households building and purchasing new homes remaining flat in the three months to July 2019, declining by only 0.8 per cent compared to the previous three months.

“Lending for established dwellings increased by a modest 0.5 per cent during the three months to July.”

Given the lag between loan applications and final approval, it is unlikely that the full effects of the tax cuts and the two RBA rate cuts will be seen in the recently released figures, according to Ms Lillicrap, who noted “these changes should lead to more positive data as the year progresses”.

More FHBs to infiltrate property market
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About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

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