First-time home buyers

First-time home buyers enter property market at record rate even as experts tip prices to fall further during recession

PHOTO: A sold home in Canberra. Overall, the number of owner occupier home loan commitments rose by 8.9 per cent while their value increased by 10.7 per cent in July

  • The number of first-time home buyers taking out loans rose by 14.4 per cent
  • First-time buyers are taking advantage of low interest rates and plunging prices 
  • Amanda Seneviratne from ABS also attributed it to easing of social distancing
  • The Commonwealth Bank predicts that house prices will drop another 6 per cent

Home loans applications by first-time home buyers have had ‘the largest month-on-month rise in the history of the series’ as people eager to get on the property ladder take advantage of sliding prices and low interest rates.

The number of first-time home buyers taking out loans rose by 14.4 per cent from June to July, according to the latest ABS figures released on Wednesday.

Overall, the number of owner occupier home loan commitments rose by 8.9 per cent while their value increased by 10.7 per cent in July.

There has been a rush to take advantage of small drops in house prices during the coronavirus recession, even though Australia’s largest mortgage holder, Commonwealth Bank, predicts house prices will drop further: a projected six per cent more in the next six months.

The number of first-time home buyers taking out loans rose by 14.4 per cent from June to July, according to the latest ABS figures released on Wednesday (stock image)

The number of first-time home buyers taking out loans rose by 14.4 per cent from June to July, according to the latest ABS figures released on Wednesday (stock image)

ABS head of Finance and Wealth Amanda Seneviratne said the rise in home loans was due to ‘social distancing restrictions being eased in most states and territories’.

‘July owner occupier home loan commitments rebounded with the largest month-on-month rise in the history of the series,’ Ms Seneviratne said.

READ MORE VIA THE DAILY MAIL

MOST POPULAR