New ABS figures out today show first home buyers are back with a bang, posting a 19.71 per cent increase in the value of new owner-occupier loans taken out in November, year on year, in seasonally-adjusted terms.
This is the highest level of new lending for first home buyers since October 2009 – almost a decade.
Overall, the total value of new home loans jumped 5.9 per cent year-on-year in November in seasonally-adjusted terms.
New owner-occupier loans continued to grow gradually, increasing 9.97 per cent year on year.
While investors slipped back slightly in November, with the value of new loans falling 3.24 per cent year on year.
|Value of new loans||% change from previous month||% change year on year|
|First home buyers (owner occupier)||
Notes: Seasonally adjusted figures. Figures exclude refinancing.
Source: ABS lending to households and businesses statistics for November 2019, released 16 January 2020.
Paul Marshall, chief executive of RateCity.com.au, said first home buyers were taking the bull by the horns.
"First home buyers have made a comeback in the past year, with close to 20 per cent more borrowing compared to the year before, as the stars aligned for them," he said.
"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 homebuyers.
"November saw the highest level of new borrowing on record since October 2009 – around the same time the governments’ first home owner boost ended.
"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," he said.