According to Master Builders Australia’s chief economist, Shane Garrett, first home buyers (FHBs) are taking advantage of falling house prices and low credit with the largest growth in seven years.
During March 2019, FHB loans accounted for 27.6 per cent of owner-occupier housing loans, higher than at any time since September 2012.
“First home buyers are becoming an increasingly vital driver of activity in our housing market, especially with investor activity so quiet,” Mr Garrett said.
According to Master Builders, FHBs enjoyed the largest share in the Northern Territory, with 42.9 per cent of owner-occupier housing loans. This was followed by Western Australia, Victoria and Queensland.
FHB participation was lowest in Tasmania, with 20.7 per cent followed by South Australia, the ACT and NSW, the group said.
Mr Garrett said the Coalition and Labor’s policy to facilitate the low-deposit loans for FHBs is most welcome.
This brings home ownership a giant step closer and spares young home buyers from being forced to waste money on expensive lenders’ mortgage insurance premiums,” Mr Garrett said.
Mr Garrett also believes this will help an already reversing housing market.
“The housing market is reversing rapidly. It is vital that we receive support from all sources in order to get activity back on track and ensure that we build the 200,000 new homes needed each year to satisfy long-term requirements,” Mr Garrett said.
Mr Garrett’s claim that the housing market collapse is heading towards the end was reaffirmed by Corelogic.