First-home buyers at highest level in five months: ABS

First-home buyers as a proportion of total owner-occupier housing finance commitments rose to their highest level in five months in June, according to ABS housing finance data.

In original terms, the number of first-home buyer commitments as a percentage of total owner-occupied housing finance commitments rose to 18.3% in June 2012, from 17.8% in May 2012.

It was the third successive month that first-home buyer commitments as a percentage of total owner-occupied housing finance commitments have risen.

Loans to first-home buyers were up a strong 4.3% for the month, noted Westpac, to be up 11.8% in the June quarter as a whole.

"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," says Westpac.

"The upgrader market remains essentially flat with loans up 1.2% for he month only partially reversing a 1.5% fall in May. Loans to this segment are unchanged from a year ago".

The proportion of first-home buyers in the market was 16.8% in April, 16.4% in March and 17.2% in February.

However, first-home buyers made up 20.3% 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.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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