First home buyers (FHB) bolstered by both state and federal incentive policies are continuing to flood housing markets across Australia, illuminating the “remarkable national aspiration” for home ownership even in uncertain times, according to Dr Andrew Wilson, chief economist at Archistar.
“The ABS reports that 13,040 first home buyer loans, seasonally adjusted, were approved nationally over September which was an increase of 6.0% over the month and 45.5% higher than approved over the same month last year,” Wilson explained.
Over the first nine months of 2020, 23.8% more loans were approved for FHBs as compared to the same time period last year; further, over the past 12 months, 120,625 FHB loans have been approved – the highest annual result seen since the government launched similar stimulus packages to offset the Global Financial Crisis in 2009.
Over the month of September, Victoria recorded the most FHB activity of all the states, followed by New South Wales, Queensland, Western Australia and then South Australia.
Wilson expects the strong FHB activity to hold until at least the end of 2020.
“A revitalising national economy with ongoing jobs growth is a positive driver of demand and the end of severe shutdown restrictions in Victoria will also translate into higher first home buyer numbers in that state,” he added.
The economist also expressed hope to see the lengthening of the government’s HomeBuilder grant, currently set to end in December.
“The federal government should clearly consider an extension to this popular initiative to facilitate more first home buyer activity and general economic energy. State government should also consider extending local first home buyers grants as a clear job creation strategy,” said Wilson.