First home buyers and Investors on the rise in ACT

Latest ABS data reveals that first home buyers and investors are continuing to fuel increased home buyer activity in the ACT.

The number of loans approved for first home buyers over June increased by 3.9 percent over the month to 186 – the highest monthly total for the year. First home buyer loan activity has increased183 over the first 6 months of this year compared to the same period last year – a rise of 22.3 percent.

First home buyers now comprise 12.7 percent of all residential lending in the ACT which is the second highest loan market share for this group of all the states and territories behind only Western Australia with 18.3 percent. The average first home buyer loan in the ACT fell from $336,900 over May to $315,700 over June.

Investor activity is also on the rise in the ACT with $217,288,000 in loans approved to this group over June – the highest local monthly result ever recorded in the ABS series. The value of ACT residential investor finance has increased by 21 .6 percent over the first 6 months of this year compared to the same period a year ago.

Total residential lending over June in the ACT excluding refinancing was the second highest recorded for any month at $462,392,000 – an increase of 16.5% this year so far compared to the first 6 months last year.

More positive news for the Canberra housing market.

Dr Andrew Wilson is Domain Group Senior Economist Twitter@DocAndrewWilson The Property Show expert 2UE Saturdays 12.30-1pm