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Lower interest rates and government incentives have seen first home buyers return to the market, data for November shows.
According to the ABS the percentage of home loans taken out by first home buyers rose to a seven year high of 23.6 per cent in November – a substantial increase from the 19.5 per cent recorded in October.
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The data also showed that first home buyers are especially eager to benefit from the government’s larger $21,000 grant for new homes; the number of loan commitments for new dwellings rose 9.8 per cent.
Overall the number of owner occupied loans taken out in November also continued to inch up, rising 1.3 per cent, seasonally adjusted, to 49,192.
Pressure is now on for the government to continue the first home owner incentives past the proposed cut-off date of 30 June.
Phil Naylor, CEO of the MFAA, said; “first time buyers are vital to the health of the housing market so the continuation of incentives to encourage them should be carefully considered”.
