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First-home buyers bounce back

Lending took another fall in August yet first-home buyers soared by one-tenth, according to data released this week by the Australian Bureau of Statistics (ABS).

The latest figures show that the value of new loans for housing fell 3.4% to $27.4 billion in August 2022 (seasonally adjusted), after a fall of 8.5% in July.

New owner-occupier loans fell 2.7% in August 2022, while the value of new investor loans fell 4.8%.

Katherine Keenan, head of Finance and Wealth at the ABS, noted that although lending continued to fall from the high levels of June 2022, the value of loans in August remained elevated compared to pre-pandemic levels.

“Owner-occupier loans in August were 36% higher than February 2020, while investor loans were 70% higher”, she said.

The number of new loans to owner-occupier first-home buyers rose 10.4% in August 2022 to 9,258. This was the largest rise since August 2020, although the level remained well below the January 2021 high of 16,330.

Increased demand was seen across almost all states and territories, particularly in Victoria (up 11.9%), Queensland (14.3%) and Western Australia (13.9%).

“Anecdotal feedback attributed some of the August owner-occupier first home buyer increased demand to the 2022-23 First Home Guarantee”, Keenan said.

The value of borrower refinancing of owner-occupier housing loan commitments between lenders rose 2.8% in August 2022 to a new record high of $12.8 billion. Borrowers continued to seek loans with lower interest rates amid an increase in the RBA cash rate in August.

At the national level, the average loan size for owner-occupiers (including construction and the purchase of new and existing dwellings) fell in August from $609,000 to $589,000, though it remained 23% higher than that seen in February 2020. Average loan sizes fell in every state, but rose slightly in both territories.

About Adam Nobel

CEO | Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA


0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 22 years experience in property investment, and 16 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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