Australia's first home buyer boom: millennials enter market
First home buyers are making a comeback in the Australian market, with the highest level of newcomers purchasing property in more than 10 years.
New figures released recently by the Australian Bureau of Statistics show that owner-occupier first home buyers jumped 21.33 per cent year on year.
During December 2019 a record of 9,606 loans were approved to first home buyers – marking the highest point since that time.
The upswing comes a month before the government's much-promised First Home Loan Deposit Scheme, which came into effect on January 1 2020.
Under the scheme, the government provides a guarantee to 10,000 first home buyers so they can purchase a home with a deposit of as little as 5 per cent, without needing to pay for lenders mortgage insurance.
"First home buyers are flocking back to a market that is quickly heating up again," said Ms Tindall.
Sally Tindall, research director at RateCity.com.au, said the boost in loans for first time buyers was a great sign for the nation's economy.