First home buyer loans reach six year high

 

The first home buyers’ share of owner occupier housing loans has reached its highest point since late 2012, according to the latest figures from the Housing Industry Association (HIA).

The group accounted for nearly a fifth (18.1%) of owner occupier home loans in June. On an annualised basis, this marks an increase of 11.4%.

HIA senior economist Shane Garett said a few reasons were behind the trend, such as several state governments’ enhancements of initiatives for first home buyers.

“In recent years, record numbers of newly built apartments have also come on stream. In terms of design and price point, many of these are particularly suited to first home buyers and have made the purchase of their first home possible,” Garrett said.

“On balance, the slowdown in dwelling price growth over the past year and ongoing low interest rates have also been favourable for those seeking to access the market for the first time,” the senior economist added.

Meanwhile, further data showed the value of housing investor loans hit a five-year low during June and has declined by 22.4% since its peak at the beginning of last year. “Investment participation in the housing market plays a key role in delivering new housing supply and is vital to the healthy functioning of rental markets right around Australia,” said Garrett.  “Recent policy and regulatory changes have made it more difficult for investors to participate in the housing market. With our population hitting 25 million, any obstacles to housing supply must be avoided so that the industry can meet our future housing needs.”

 

Posted by: Dominik Weber

Date: 01/09/18

From: brokernews.com