The latest housing finance figures released by the Australian Bureau of Statistics (ABS) show total lending for housing growing in response to interest rate cuts and an overall positive housing outlook.
Recent figures show the number of owner-occupied finance commitments trending up with all states except the Northern Territory posting a rise. The largest increase was in Western Australia and South Australia – both up 2.4%. Lending for buying established dwellings was up 1.7% and new dwellings was up 3.6%. Finance commitments for the construction of new dwellings were up 1.3%. The value of investment housing commitments rose by 0.9%.
Lending for first home buyers also rose slightly, from 14.3% in April to 14.6% in May although the Real Estate Institute of Australia (REIA) believes this number should be higher, citing the long-run average proportion of 20.1% lending for first time buyers.
This drop can largely be attributed to State Governments, except Western Australia, withdrawing previous levels of support for first home owners buying established dwellings, and it’s established dwellings that 80 per cent of first home buyers prefer.