Tasmania saw the largest growth in investment housing commitments for October, while ACT figures saw the biggest drop.
The latest housing finance figures by the REIA saw Tasmania record an increase of 2.7%. New South Wales and Victoria also recorded increases, while the Australian Capital Territory fell by 0.8%.
REIA president Peter Bushby says the figures show overall confidence in the housing market in response to interest rate cuts and the more positive housing outlook for much of the country, however first home buyers continue to shy away from the market.
“The proportion of first home buyers in the number of owner-occupied housing finance commitments increased slightly to 12.6 per cent compared to the September figure of 12.5 per cent,” says Bushby.
“The proportion is one of the lowest since data began to be collected in July 1991 and is far lower than the long-run average proportion of 19.9 per cent, despite eight interest rate cuts since November 2011.
“With the number of first home buyers at historically low levels and further falls predicted in Victoria it is time for government to review support to first home buyers to get into their own properties,”
The number of commitments for the construction of new dwellings climbed 0.7 per cent Australia-wide and purchase of established dwellings went up 0.6 per cent. The purchase of new dwellings fell by 0.1 per cent, however.