First-home buyers content to pay more
May 27, 2009
The average loan size for first-home buyers has risen by just over $50,000 - or 23 per cent - in the past two years amid concerns that the First Home Owners Boost could be artificially inflating the market.
A report commissioned by market research firm Brandmanagement found the average size of loans being taken up by young home buyers is jumping beyond the amount they receive from the Government’s ‘Boost’.
Drawing from ABS figures, the report discovered the average size of loans rose by $29,500 in the six months to February.
In total, the first-home buyer average loan size soared $52,000 higher to $280,600 in the two years to February.
The huge rise in the value of their individual loans in recent months has made first-home buyers become an increasingly important part of the residential market. The figures show that by February they comprised around one quarter of the market: up from 17.3 per cent in February last year.
The actual number of first-home buyers has also rose sharply, with the Federal Government reporting that around 59,000 bought into their first home in the six months to April.