First home buyers surge to decade high

First home buyers surge to decade high

Today’s ABS figures show first home buyers continue to make a comeback; reaching the highest level since December 2009, in seasonally-adjusted terms.

The data shows the number of new loans taken out by owner-occupier first home buyers jumped 21.33 per cent, year-on-year, according to the December data.

Overall, the value of new home lending (excluding refinancing) increased 14 per cent, year-on-year, led by owner-occupiers.

Value of new loans % change

Nov 2019 – Dec 2019

% change

Dec 2018 – Dec 2019

Highest since
Owner occupiers

5.05%

17.92%

May-18

Investors

2.83%

4.90%

Oct-18

Total housing

4.43%

14.00%

Jul-18

Notes: Seasonally adjusted figures. Figures exclude refinancing.

Source: ABS lending to households and businesses statistics for December 2019, released 11 February 2020.

Number of new loans % change

Nov 2019 – Dec 2019

% change

Dec 2018 – Dec 2019

Highest since
First home buyers

6.23%

21.33%

Dec-09

Refinancers

6.41%

3.61%

Sep-19

Notes: Based on the number of new loans to owner occupiers using seasonally adjusted figures.

Source: ABS lending to households and businesses statistics for December 2019, released 11 February 2020.

Sally Tindall, research director at RateCity.com.au, said it was interesting to see the first home buyer market pick up before the government’s new scheme had even started.

“First home buyers are flocking back to a market that is quickly heating up again,” she said.

“Initial numbers show the new First Home Loan Deposit Scheme has generated huge interest, adding more competition at already packed open homes.

"The last time we saw this level of first home buyer activity was back in December 2009 when the then government’s First Home Owner Boost was wrapping up.

“If property prices continue to surge, the RBA will be hesitant to cut rates further,” she said.

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