First Home Buyers Return
First-home buyers are back with loans in a big way according to recent figures. The number of first-home buyer commitments as a percentage of total owner-occupied housing finance commitments rose to 18.3 per cent in June. It was the third successive month that first-home owner commitments as a percentage of total owner-occupied housing finance commitments have risen.
“This likely reflects the buyer incentives expiring in Victoria and, to a lesser extent, NSW and SA, although lower interest rates also played a role,” said a Westpac spokesperson. However, first-home buyers made up to 20.3 per cent of the market at the start of the year. Between June 2012 and May 2012, the average loan size for first-home buyers rose $3,600 to $289,400. The average loan size for all owner-occupied housing commitments rose $1,900 to $295,500 for the same period.