First home buyers are edging back into the market, with new data revealing the highest number of first home purchases since March 2010.
According to data from the Australian Bureau of Statistics, the percentage share of first home buyers out of all homes financed in November crept up by 0.20 percent to 15.60 per cent; conversely the percentage share of home loans taken out by non-first home buyers dropped by 0.20 per cent to 84.40 per cent.
The biggest number of first home buyers to enter the market in November was from New South Wales with 2,542 home loans approved, followed by Victoria with 2,342 and Queensland with 1,559. This is the highest number of first home buyer loans in NSW since May 2010.
Commenting on the results, RateCity’s chief executive officer Damian Smith said the first home buyers market was still a long way from its peak during the global financial crisis when government incentives drove the number of first home buyers to record highs.
“While the first home buyer market has come off from the 2009 peak fuelled by government-funded boosts, the total number of home loans taken out in November has increased sharply compared with the previous few months,” Mr Smith said.
“However, the overall home loans market is still not where it was in the middle of the past decade when it peaked at almost 72,000 home loans in May 2006 compared with about 54,000 in November.”