First homebuyers are thriving in stable market conditions

Australians looking to buy their first home have to be pleased with the current state of the housing market.

According to the Real Estate Institute of Australia, the housing figures recently released by the Australian Bureau of Statistics (ABS) show that first home buyers are thriving in the stable market conditions.

REIA President Malcolm Gunning said the proportion of new homebuyers as part of the total owner-occupied housing finance commitments jumped by 18% in November, the highest proportion since October 2012.

“The number of loans to first home buyers at 11,091 is the highest since December 2009 when the first home buyers boost, as part of the Government’s response to the GFC, ceased,” Gunning noted.

In contrast, he said the value of investment housing commitments dipped by 0.3%, following the declines in the previous ten months.

“It is pleasing to see the increased presence of first home buyers. The figures show that owner occupiers and first home buyers are responding to more stable conditions and, in the case of first home buyers, state government incentives,” Gunning stated.

Overall, the number of owner-occupied finance commitments increased by 0.1%. Excluding refinancing, the number of such commitments remained flat after thirteen succeeding months of increases.

In terms of location, owner-occupier commitments grew in Victoria, The Australian Capital Territory, South Australia, and Queensland.

Meanwhile, the number of established dwellings purchase commitments went up by 0.2% as dwelling construction fell by 0.7%. Purchase of new dwellings also increased, up by 0.5%.

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