The stars are aligning for first-time home buyers, who are back with a bang, posting a 19.71 per cent increase in the value of new owner-occupier loans, ABS figures have shown.
The value of new loan commitments for housing rose by 1.8 per cent in November 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics figures.
Paul Marshall, chief executive of Rate City, said first home buyers are taking advantage of the stars aligning for them.
“Three RBA rate cuts, a housing market that had lost some steam, and changes to serviceability increased the borrowing capacity for some people – a perfect storm for first home buyers,” Mr Marshall explained.
Overall, the value of new loan commitments for housing rose by 1.8 per cent in November 2019, according to seasonally adjusted figures.
ABS chief economist Bruce Hockman said, “Growth in the value of new loan commitments for housing continued to be underpinned by owner-occupiers, with the value of new loan commitments for owner-occupier housing rising 1.6 per cent in November to record the sixth straight month of growth.
The value of new loan commitments for investor housing also rose in November, up 2.2 per cent. However, over the longer term, this series remains down on recent peaks in activity.
“While we haven’t returned to the peak of first home buyer levels, we’re likely to see more buyers continue to surge into the market this year, particularly helped along by the first home loan deposit scheme,” Mr Marshall said.