Owner occupiers driving housing finance numbers

According to the Real Estate Institute of Australia (REIA), the value of loans for housing continues to be positive with the increase being driven by owner occupiers.

These figures were revealed by the December 2019 Lending to Households and Business figures released by the Australian Bureau of Statistics.

National overview

REIA President Adrian Kelly said the value increased in all states and territories except Tasmania

“Overall, the figures for December 2019 show, in seasonally adjusted terms, that the value of owner-occupied finance commitments, excluding refinancing, increased by 5.1 per cent for the month and 17.9 per cent for the past year,” Mr Kelly said.

“The value of investment housing commitments, excluding refinancing, increased by 2.8 per cent in December and is the third consecutive month of increases contributing to an increase of 4.9 per cent for the year.”

“Following a drop in the previous three months the number of loans to owner occupier first home buyers increased by 6.2 per cent in seasonally adjusted terms and 21.3 per cent for the year.

First home buyers

Mr Kelly said the number of first home buyers increased in all states and territories except Tasmania.

“The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, excluding refinancing, was 30.2 per cent,” Mr Kelly said.

“With the introduction of the First Home Loan Deposit Scheme in January 2020 we can expect a pickup in the January figures as well.

“The finance commitments for December reflect a continuing interest and boost in confidence in all buyer segments of the real estate market at the close of 2019”.

Western Australia

REIWA President Damian Collins said from a WA perspective, things are starting to look up in the property market.

“The value of new loan commitments in the state rose 14 per cent in December 2019 compared to the previous year, with owner occupied loans increasing 15 per cent,” Mr Collins said.

“In addition, WA has also seen an increase in the number of first home buyers and according to the latest report from ABS, WA had the largest proportion at 43.2 per cent compared to other states and territories.

“With the 75 per cent rebate on off-the-plan apartments, combined low interest rates and the First Home Loan Deposit Scheme, buyers are in a prime position to take advantage of the Perth property market and get into their new home sooner.”

Are you looking to buy and not sure where to start? Check out our first home buyers guide for some helpful tips.