Key Facts

  • First home buyer activity remained steady in October with minor fluctuations in buying behavior.
  • In October, the new mortgages were approved for 2437 first home buyers, up from 2233 in September, but slightly less than the 2481 approved in August.
  • First home buyer’s share of the housing market has stayed unchanged for the last five months – at 37% of new mortgages issued for buying a property.
  • The percentage of low equity loans approved for first home buyers with less than a 20% deposit declined from 32% in August to 29% in October.
  • The average amount borrowed by first home buyers in October was $617,564, the lowest since April, with the average price of homes bought was $677,347.

Article Summary

Steady activity was observed among first home buyers in October, despite minor oscillations in buying behavior, according to the latest data from the Reserve Bank. Approvals for new mortgages saw an uptick, with 2437 first home buyers managing to secure them in October, a small increase from the 2233 approved in September, but still a bit less than August’s 2481 approvals.

The market share held by first home buyers remained static for the past five months, with 37% of all new mortgages for property purchases being held by them. This indicator leaves out top-up mortgages and only accounts for new mortgages purposed for buying new properties.

An emergent trend indicates a cautious approach by first home buyers, especially concerning the amounts they are willing to pay and borrow for a home. The downward trend in the approval of low equity loans for first home buyers who have a less than 20% deposit has been in evident in the past couple of months – 32% in August, 31% in September, and 29% in October. Consequently, the average borrowing amount in October was down to $617,564, the lowest since April, with the average price paid for a home in the same month being $677,347.

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