First timers back in homes market

FIRST home buyers have flocked back to the property market and signed up a decade-high number of new loans.

New statistics released yesterday by the Australian Bureau of Statistics showed in December the number of firsttime buyers increased by 6.2 per cent in seasonally-adjusted terms to a monthly total of 9606 – the highest level since December 2009.

The average size of a loan was $412,240.

The new loans taken out by first home buyers also climbed by 21.3 per cent in December compared to December 2018.

A recovering housing market, the easing of lending rules and record-low interest rates have been highlighted as the reasons for the sharp incline in first homebuyer activity.

HSBC chief economist Paul Bloxham said the market was more appealing to owner occupiers than investors at the moment.

“But it may still be that we get more investor activity somewhere down the track.”

Mr Bloxham said the Australian Prudential and Regulation Authority “loosened the settings” last year in tandem with multiple cash rate cuts and that had also played a part in helping boost buyer activity.

Aussie chief executive officer James Symond said it showed “young Aussies have a strong appetite for property”.

“Australians naturally want to progress towards their home ownership goals and with the current low rates, strong auction clearance rates, and the Federal Government’ First Home Loan Deposit Scheme 2020 it’s providing new opportunities for first home buyers to capitalise on,” he said.