Finance for first home buyers highest since 2013

The latest housing finance data, released by the Australia Bureau of Statistics (ABS) earlier today shows the number of home loan approvals increased by 2.1 per cent for owner occupied housing, and by 2 per cent for the construction of new dwellings, in November.

Matthew Pollock, Master Builders Australia’s National Manager, Economics said it’s important and encouraging to see more first home buyers in the market. “With the share of first home buyers in owner-occupied housing jumping up to 18 per cent – the highest share since July 2013,” he said.

“On the other hand, recent constraints on domestic and international investor activity seem to be having the desired effect. But there is a growing concern that given the market is cooling – construction activity and prices have moderated in recent months – that these constraints may exacerbate the slowdown,” Matthew Pollock said.

By state, in seasonally adjusted terms, housing finance commitments:

• Rose in New South Wales (up 343, 2.0%), Queensland (up 325, 3.1%), the Australian Capital Territory (up 100, 8.6%), Victoria (up 91, 0.5%), South Australia (up 56, 1.5%) and Tasmania (up 7, 0.7%).
• While falls were recorded in Western Australia (down 191, 3.5%) and the Northern Territory (down 25, 8.5%).