First home buyers claim their biggest slice of the property pie in six years

First home buyers have claimed their biggest share of new housing loans in more than six years, according to the latest ABS Housing Finance figures.

Today’s data shows first home buyers made up 18.3 per cent of owner-occupier loans taken out in November, up 0.2 per cent from last month. This is the highest share for first home buyers since October 2012.

Meanwhile, the value of investor commitments dropped 4.5 per cent month-on-month and 23.4 per cent year-on-year, in seasonally adjusted terms.

Overall, the value of home lending fell 2.5 per cent in November, after an unexpected uptick in October. Owner-occupied housing also fell in value by 1.4 per cent, according to the seasonally adjusted figures.

RateCity.com.au data shows some banks are competing fiercely for first home buyers, putting  a range of sweeteners on the table from grants and cash back offers, to fee waivers and rebates.

Sally Tindall, research director at RateCity.com.au, said first home buyers were getting a stronger foothold in a slowing property market.

“Many first home buyers have been biding their time, squirrelling away savings and waiting for the opportunity to strike,” she said.

“There’s finally space in the market for them to find their feet without having to go head-to-head with experienced investors.

“While the banks still have serviceability requirements on a tight leash, they’re welcoming first home buyers in the door, provided they’ve got a decent deposit and have a proven track record of frugal spending.”

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