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Brokers will be buoyed by the news that housing finance activity soared in December confirming lower interest rates, lower prices and government incentives have sparked borrower activity.
The total number of owner occupied home loans taken out in December increased by 6.4 per cent to reach 52,974 and a total value of $18.633 million, ABS data revealed today.
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The number of loans for new dwellings in particular rose by a significant 15.2 per cent to 2,275.
The percentage of first home buyer commitments also surpassed the 25 per cent mark in response to the government’s beefed-up first home owner grant (FHOG), climbing to 25.4 per cent.
John Kolenda, group executive director at Loan Market Group said the seven year high in first home buyer commitments showed the market would benefit from an extension to the FHOG boost until at least the end of the year.
“The latest Australian Bureau of Statistics figures underline that the increase to the first home buyers grant has been one of the most successful measures in the first $10.4 billion economic stimulus package announced last October,” Mr Kolenda said.
“Extending it will have a positive flow-on effect for the entire housing market.”
