Fewer First Home Buyers Show Confidence in Property
In the month of November 2012, the number of home loans approved for owner-occupiers decreased by 0.5 %, with the Australian Bureau of Statistics data showing that just 46,199 loans were approved in this month.
Similarly the number of first-time home buyers also decreased and approval of finance to enable the building of new homes fell by 10.3 %.
In contrast, a modest increase of 0.3 % was made in the number of loans for building new homes.
The reduction in the number of home loans approved is understood to have been led by a significant decrease in the number of first home buyer loans. The proportion of loans for this group fell from 18.7 % in October to 15.8 % in November 2012.
However, some economists believe that the fall in the number of loans approved for first home buyers will not be permanent. The Westpac bank economics team has said, “Beyond these timing distortions, the first home buyer market is expected to advance in response to improved housing affordability associated with lower interest rates.”