First home buyers bounce back
Broader housing finance activity suffered another fall in March but the first home buyer market presented some signs of improvement.
New data released by the Australian Bureau of Statistics yesterday revealed a 1.5 per cent decline in the number of home loans approved in the month of March.
Despite the overall fall however the number of loans written for first home buyers, as a percentage of all owner-occupied loans, rose to 16 per cent.
This compared to 14.9 per cent recorded in February.
While the result was a welcome one, first home buyer figures remain well below the long-run national average of 20.1 per cent according to the Real Estate Institute of Australia (REIA).
“It is positive news that first home buyer numbers have increased (as a percentage of the market) but there is still a long way to go to see a healthy number,” said REIA president David Airey.
“The RBA should not see this as a sign to increase interest rates next month,” he said.