First-home-buyer activity in Queensland continues to rise with November lending to this group the highest recorded since last March.
Some 1671 loans were approved to first-home buyers according to the latest ABS data which was ahead of the 1619 recorded over the previous month and also higher than the 1540 reported over November the year before.
Queensland approved 17,130 first home buyer loans over the first 11 months of 2015 which was 1.4 percent higher or 234 more than the 16,896 approved over the same period in 2014
First-home-buyer loans reported over November accounted for 11.6 percent of all residential lending approved in Queensland over the month – the highest market share for the year but still below the long-term average for the local market of 15.6 percent.
Although first-home-buyer lending activity increased over November the average loan for this group fell slightly to $301,400 – just below the previous month’s record high of $305,100. The average Queensland first home buyer loan has increased by 1.9 percent compared with November 2014.
An improving economy is a key driver of increased housing market activity inclusive of first home buyers. Latest ABS data reports that the Queensland seasonally adjusted unemployment rate fell from 5.9 percent to 5.8 percent over December – the lowest rate recorded by the state for two years.
The prospects remain positive that Queensland first-home-buyer activity will continue to increase in 2016 which is good news for those chasing the great Australian dream.
Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson, and The Property Show expert 4BC Saturdays 7.30am.