FHBs In The Market

Rising property prices are not deterring first home buyers (FHB) from entering the market, with new figures showing a 3.8% increase in loans in the past year.

The First Home Buyer Mortgage Insights report from Money.com.au reveals there were 125,036 first-home buyer loans issued in the year to March.

Money.com.au property expert, Victoria McGavin, says the figures show that when governments step in with incentives, it makes a real difference in helping first-home buyers get on the property ladder.

Queensland is the only major state to record an increase in loans to first home buyers with loans rising from 6.5% to 6.9% year-on-year.

McGavin says Queensland is rising as it is more affordable than some of the other states, and it has increasing buyer confidence.

“It’s the only major market where first home buyer growth is picking up pace, and that’s being matched by a surge in borrowing power and price expectations,” he says.

Despite experiencing a slight fall in the past 12 months, Victoria still accounts for the largest percentage of FHB loans.

The average loan size for a FHB is highest in Queensland at $524,169, while in Victoria it is $517,930.

Western Australia’s average FHB loans jumped 14.1% in the past 12 months to reach $489,894.

Nationally, the average owner-occupier loan is $659,922, and the average FHB loan is $542,356.