Strong growth in first home buyer lending in August

First home buyers are flooding back into the market with a 17. 2 per cent rise in housing commitments for the month according to the Australian Bureau of Statistics’ (ABS) August 2017 housing finance data.

These latest figures are the highest that have been seen since 2013 and it’s very likely that they have been helped along by stamp duty changes in both NSW and Victoria, where larger increases where seen than in other states and territories.

As of July this year first home buyers in NSW and Victoria were able to take advantage of stamp duty exemptions for properties under $650,000 and $600,000 respectively and pay reduced duty for properties up to $800,000 and $750,000.

Lenders making a comeback too 

First home buyers weren’t the only group to see a rise in August with investor lending also seeing a surprise recovery despite the best efforts of the Australian Prudential Regulation Authority.

The value of investor lending rose by 4.3 per cent in August, surpassing the 0.9 per cent rise in owner-occupier lending.

. All in all lenders approved a massive $33.9 billion in housing loans in August, an increase of 2.1 per cent since July, showing that the great Australian dream of buying a home is still alive and well for many.

 Key findings from the ABS August housing finance data include:

  • Total dwellings approvals increased by 2.1 per cent.
  • The value of owner-occupied lending increased by 0.9 per cent.
  • The value of investor lending increased by 4.3 per cent.
  • The value of first home buyer lending increased by 17.2 per cent.
  • The average loan size for first home buyers fell $900 to $369,600.
  • Construction finance dropped by 2.4 per cent in August, however it experienced a 4 per cent rise in July.
  • Lending for new dwellings for owner-occupiers rose 1.5 per cent.

Leave a Reply

Your email address will not be published. Required fields are marked *

SITE SPONSOR

Our site sponsors

YOUR COMPANY HERE
If you're interested in becoming a site Sponsor, please contact me today and we can make a deal to promote your business here!