First home buyers are making the comeback of a decade with new figures showing the highest level of new lending in almost 10 years.
The latest Australian Bureau of Statistics figures show 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
While investors slipped back slightly in November with the value of new loans falling 3.24 per cent year on year, overall, the total value of new home loans jumped 5.9 per cent year-on-year in November, and new owner-occupier loans continued to grow gradually, increasing 9.97 per cent year-on-year.
RateCity.com.au Chief Executive Paul Marshall said the stars had aligned for first homebuyers in 2019, with close to 20 per cent more borrowing compared to the year before.
“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 home buyers,” Mr Marshall said.
“November saw the highest level of new borrowing on record since October 2009 – around the same time the government’s first home owner boost ended.”
Mr Marshall sais although the market hadn’t returned to the peak of first home buyer levels, it was looking good for the year ahead.
“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.