First home buyers are jumping back into the property market, especially in New South Wales and Victoria, according to the latest data from the Australian Bureau of Statistics.
In August 2017, there were 10,227 owner-occupier first home buyer commitments which represented 17.2 per cent of all owner occupier buyer commitments its highest proportion since July 2013.
Corelogic research analyst Cameron Kusher said a big driver of the surge in first home buyer housing finance commitments has been some recent policy changes for first home buyers in the two largest states where from 1 July this year first home buyers do not have to pay stamp duty on properties below $650,000 in NSW and $600,000 in Victoria with concessions available up to a purchase price of $800,000 and $750,000 respectively.
Between June and August, the number of owner-occupier first home buyer housing finance commitments has increased by 59 per cent in NSW and 34 per cent in Victoria.
[Related reading: Stamp Duty Exemptions in NSW and Victoria Attracting First Home Buyers]Mortgage Choice said that first homebuyers accounted for approximately 15 per cent of all their loans written in September 2017 -- an increase from 10 per cent a year earlier, with sharp rises especially recorded in NSW and Victoria according to their data.
“We haven’t seen this many first home buyers in the market since July 2013, when this type of home buyer accounted for 15.4% of all home loans approvals,” Mortgage Choice chief executive John Flavell said.
“First home buyer activity has also increased of late in Western Australia and the Northern Territory, two markets where values have been falling for some time which could be creating opportunities for first time buyers previously unable to enter the market," Kusher said.
"Queensland and the ACT have also seen upticks in first home buyer demand of late which is occurring due to moderately rising prices."According to Kusher, first home buyers will increase, particularly in markets where buyers are driven to take advantage of stamp duty concessions.