First home buyers are continuing to take advantage of a less competitive environment and more affordable house prices, according to the Housing Industry Association (HIA).
HIA economist Angela Lillicrap said yesterday’s ABS Lending to Households and Business Data for July indicated the number of loans to first home buyers was up by 1.3 per cent for the month and 4.0 per cent for the three months to July.
“First home buyers account for just under one third of the total market. The continued growth of this segment is important for the broader housing market,” Ms Lillicrap said.
“Market confidence is slowly returning with lending to households building and purchasing new homes remaining flat in the three months to July 2019, declining by only 0.8 per cent compared to the previous three months.
“Lending for established dwellings increased by a modest 0.5 per cent during the three months to July.
“Given the lag between loan applications and final approval, it is unlikely that the full effects of the tax cuts and the two RBA rate cuts will be seen in the recent figures. These changes should lead to more positive data as the year progresses,” Ms Lillicrap said.
