Home investors rise in Western Australia, but first-home buyers remain flat

Investor activity continues to rise in Western Australia, although first-home buyer numbers continue to flatten according to the latest data from the Australian Bureau of Statistics.  

Western Australia approved $1.3 billion in residential investor finance over June, which was an increase of 10.1 per cent over the May result. The total value of residential investment finance approved in Western Australia over the first six months of this year however remains 1.9 per cent below that recorded over the same period last year.  

Despite this marginal comparative fall in activity levels, June was nonetheless the second consecutive monthly increase in investor finance and the highest monthly total for this year so far.

First home buyer numbers increased slightly by 0.5 per cent over June compared to May, rising from 1517 to 1525. Despite this small rise over the month, first-home buyer activity has fallen sharply this year – down by 13.9 per cent over the first six months of 2015 compared to the same period last year, a decrease of 1422.

The average first-home buyer loan approval also fell slightly over the month by 0.1 per cent, down to $348,500.

Lending by Western Australian first-home buyers currently comprises 18.3 per cent of all residential lending.  This is clearly the highest proportion recorded by any of the states and just below the states long term average of 18.6 per cent.

Total residential lending excluding refinancing, increased by 5 per cent over June compared to May. However, residential lending this year so far is down by 7.8 per cent compared to the same period last year.

Dr Andrew Wilson is Domain Group Senior Economist Twitter@DocAndrewWilson