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The latest Australian Bureau of Statistics Lending Indicators data has shown first-time buyers are a resilient group, according to a Housing Industry Association economist.
Maurice Tapang, an economist at the Housing Industry Association (HIA), said: “The number of housing loans issued to first-time home buyers has been steadily increasing in recent months, pointing to strong demand for homes among aspiring home owners.”
Following the release of the latest data from the Australian Bureau of Statistics (ABS), he said: “It has been 10 months since the last rate increase, and home buying confidence is picking up across different borrower types.”
Pointing out that first home buyers “have been resilient in this cycle”, he said the number of loans issued to the cohort was up by 0.8 per cent across July to almost 10,000.
“This leaves the number of loans issued in the three months to July 2024 to first home buyers 6.4 per cent higher compared to the same time in the previous year.”
Overall, loans to first home buyers made up 35.4 per cent of the overall buying market across July – above the historical average of 30 per cent.
Tapang said it busted the myth that investors are in competition with first home buyers, pointing out the data shows “the two can both be very active in the market”.
Taking a closer look at investment loans, the economist said “investors in the market have been important in adding to housing supply, particularly in this cycle, amid higher rents and low vacancy rates”.
Loans issued to investors building new homes rose by 26.7 per cent in the three months to July 2024 compared to the same time last year.
“As is expected, investors are the first segment of the market to return as they see through the macro-dynamics of house price growth and rising rents,” Tapang said.
“It is expected that owner-occupiers will follow suit, which will see more of them flow into the new home market amid a return of confidence and certainty with build costs and time frames,” he concluded.
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