The number of owner-occupied housing commitments increased 2.9 per cent in May, statistics from ABS’ Housing Finance report has revealed.
The increase highlights the impact lower interest rates and the first home owner grant continue to have on the property market.
According to the ABS, the number of owner-occupied housing commitments, on a trend basis, increased in all states except Tasmania, which recorded a decrease of 1.2 per cent.
“This is the third consecutive month showing continued increases in the number of finance commitments for investment purchases,” REIA president David Airey said.
On the first home buyer front, the number of commitments as a percentage of the total owner occupied housing commitments rose to 29.5 per cent in May. This compared to 28.6 per cent in April.
While the increase marks the strongest first home buyer activity recorded by the ABS to date, data from the Real Estate Institute of Australia (REIA) showed the average loan size decreased by $3,400 to $291,200 in May compared to the month prior.
“The decrease in the average loan size reflects interest rate cuts, the last of which was in April,” Mr Airey said.