First Home Buyer Loans Reach Decade High – And Even Better To Come

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Updated: June 16, 2020

“December 2019 saw the volume of First Home Buyer home loans surge to their highest level since late 2009 according to ABS data,” Master Builders Chief Economist Shane Garrett said.

During December, the volume of home loans to First Home Buyers increased by 6.2 per cent in seasonally-adjusted terms to record a monthly total of 9606. The last time a higher monthly total was recorded was exactly 10 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 Buyers once they are released,” Shane Garrett said.

“Apart from First Home Buyers, today’s 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,” Shane Garrett said.

During December 2019, the First Home Buyer share of the owner occupier market was highest in Western Australia (43.2 per cent) followed by Victoria (40.9 per cent), the Northern Territory (38.4 per cent) and the ACT (32.6 per cent).

The FHB market share was lowest in South Australia (25.7 per cent), followed by Tasmania (27.6 per cent) and New South Wales (30.5 per cent).

In Queensland, First Home Buyers account for 31.4 per cent of the market.