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$vuetify.icons.faPhone1300 650 620

Affordability weighing on first home buyers

Media release

Affordability weighing on first home buyers

Media release
“The value of loans to first home buyers fell by 5.0 per cent in the first month of 2022, with the last three months being 14.8 per cent down on a year earlier,” stated HIA Economist, Tom Devitt.

The ABS released the Lending to Households and Businesses data for January 2022 today. The data provides statistics on housing finance commitments.

“First home buyers remain more active in the market now than before the pandemic, despite the reduction in the value of lending in recent months,” added Mr Devitt.

“First home buyers are very sensitive to changes in market confidence, tightening of finance and declining affordability.

“Owner occupiers (excluding first home buyers) and investors, on the other hand, both reached new record highs in January in terms of the value of loans. The activity of owner occupiers has kept investors to only a third of the market, compared to over 40 per cent back in 2015.

“Lending for renovations has also maintained record high levels. The value of loans in the last eight month were double that of the equivalent period a year earlier,” concluded Mr Devitt.

 
Housing loans, by market segment, $M
Housing loans, by market segment, $M

For more information please contact:

Thomas Devitt

Senior Economist

Tim Reardon

HIA Chief Economist
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