In the best result for property market newcomers in five years, almost one in five home loans were taken out by a first-home buyer in January. The Australian Bureau of Statistics (ABS) today released their housing finance figures, which showed that first home buyers accounted for 18% of owner-occupier loans.
Increased grants to first home buyers in New South Wales and Victoria have helped rekindle the group’s participation in the property market. The West Australia Key Start program has also boosted numbers, by offering loans backed by the government to the first home buyer market. However, the most significant contributor was the Northern Territory, which had the highest share of first-home buyers – accounting for 26.8% of the owner-occupier mortgage volumes – due to the $26, 000 grant offered by the Northern Territory Government to first home buyers who purchase or build a new home.
Tasmania and South Australia had the lowest first home buyer share, which makes sense due to the demographics of these regions – it generally tends to be well-established families and older couples who buy in these states, Tasmania especially.