SA first home buyers now rising

First home buyer activity in South Australia continues to rise with a sustained recovery in this sector remaining on track.

Predictably weaker activity had followed last year’s change to the local first home buyers grant that was abolished for established homes.

Latest ABS data reports however that 570 first home buyer loans were approved  in September – an increase of 11.5 per cent over the 511 approved  in August.

Over the first nine months of this year 4551 first home buyer loans were approved in South Australia, a decrease of 861, or 15.9 per cent from the 5412 recorded over the same period last year.

The average first home buyer loan fell to $266,000  in September but this was still 4.9 per cent higher than the average loan for this group  in the same month last year.

First home buyers accounted for 12.8 per cent of all residential lending  in September which is now approaching the local long-term average of 14.5 per cent. 

In another positive sign for the local market, total lending for owner-occupiers excluding refinancing in South Australia increased to $705.4m over September – up by 5.8 per cent  for the month and the highest monthly total recorded so far this year. The value of lending to this group remains 2.8 per cent higher over the first nine months of this year compared to the same period a year ago. 

Dr Andrew Wilson is Domain Group Senior Economist Twitter@DocAndrewWilson