First-home buyer activity drives bounce in home loan figures

Falling property prices are contributing to a bounce in home loan lending and first-home buyers are some of the borrowers responsible for the rebound.

In November last year, Australian Bureau of Statistics figures show the value of home loans rose 2.3 per cent seasonally adjusted.

The figures have surprised forecasters who were expecting flat numbers after a sluggish month prior.

Owner-occupier loans increased more than investors, with a 2.7 and 1.5 per cent jump respectively.

The figures are encouraging for first-home buyers, who are filling the positions being left vacant by investors who are feeling the heat from APRA lending crackdowns and cooling prices.

Daniel Gradwell from ANZ told the ABC new stamp duty discounts from the Victorian and NSW Governments was stimulating activity in the first-home buyer space.

“In six months of stamp duty discounts, the value of the bottom quartile of properties in Melbourne has increased 8 per cent — well above the 3 per cent growth of the total Melbourne market,” Mr Gradwell said.

“Even in the weaker Sydney market, where overall prices have fallen by 2 per cent over the same period, the value of properties in the bottom quartile has nudged higher.”

IN a good sign for the construction industry, loans for new home construction also showed up some healthy figures, jumping 2.1 per cent for November.


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