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After remaining dormant for most of 2008 first home buyers are back with a vengeance according to sales figures released by AFG today.
The aggregator’s Mortgage Index showed that $474 million worth, or 22 per cent, of all new loans written by its brokers in November were for first time buyers.
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Compared with just four months ago this figure represented a 120 per cent increase on August where just $215 million worth of loans were taken by first home buyers.
The RBA cut interest rates by 0.25 per cent in September for the first time since December 2001 – they have now fallen three per cent.
Mark Hewitt, AFG general manager of sales and operations, said the pickup in first home buyer activity was positive news for the wider market.
“This influx of first home buyers is good news, not only for the lower end, but for the medium term health of the property market as a whole,” he said.
With AFG claiming ten per cent of the national mortgage market, it estimated that first home buyers accounted for a total of $4.7 billion of property purchases in November.
