The very surprising thing young Australians have been doing during the pandemic – and it's a BIG decision
- The number of first-home buyers in November surged by 47.6 per cent annually
- The tally of 13,905 was the highest monthly number since the GFC in late 2009
- Property newcomers made up 41.6 per cent of all owner-occupier home loans
Young Australians have been flocking to the property market with first-home numbers surging by 48 per cent in one year.
In November, 13,905 property newcomers took out a home loan, new Australian Bureau of Statistics data showed.
This represented a 47.6 per cent annual increase and the highest monthly tally since October 2009, at the height of the Global Financial Crisis, when Kevin Rudd's Labor government temporarily tripled first-home buyer grants to $21,000.
First-home buyers also represented 41.6 per cent of all loans near the end of 2020, despite the aftermath of the Covid recession.
Young Australians have been flocking to the property market with first-home numbers surging by 48 per cent in one year to an 11-year high of 13,905 in November 2020. Pictured is a Brisbane auction last year
Canstar executive Steve Mickenbecker said record-low interest rates and state government stamp duty exemptions or discounts for first-time buyers were likely to underpin more borrowing activity in 2021.
'First home buyers are flooding into the market, responding to federal and state incentives and low interest rates,' he said.
'With the property price buoyancy we have seen in some state capitals, fear of missing out will be playing on minds and driving people into action.'
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A CommSec analysis of the ABS data showed a five per cent annual increase in average mortgage sizes for an existing, owner-occupier homes to $528,800.
Ryan Felsman, a senior economist with the online broking group, said an increasing number of young Australians were committing to home ownership despite the uncertainty around the Covid pandemic.
'Of course, owner-occupiers are particularly sensitive to fluctuations in housing affordability,' he said.
First-home buyers also represented 41.6 per cent of all loans in November. CommSec senior economist Ryan Felsman said an increasing number of young Australians were committing to home ownership despite the uncertainty around the Covid pandemic. Pictured are Canberra units
'While the Covid-19 housing recovery is well underway – pushing up house prices in particular – first home buyers are still keen on home ownership.'
Median house prices rose in every state capital city in November and December, following the end of Melbourne's three-month Covid lockdown in late October, CoreLogic data showed.
The total value of owner-occupier home loans hit a record high in November, as first-home borrowing levels increased by a monthly pace of 3.1 per cent.
Canstar executive Steve Mickenbecker said record-low interest rates and state government stamp duty exemptions or discounts for first-time buyers were likely to underpin more borrowing activity in 2021
Borrowing for all home loans rose by 5.6 per cent in November, marking the sixth consecutive monthly increase and an annual rise of 23.7 per cent.
The federal government's short-lived $688million HomeBuilder program was a major driver with the value of loans to build a new dwelling surging by 75 per cent since July when the grant came into effect.
Under that scheme, which ended on December 31, Australians were able to claim $25,000 from taxpayers to build a new house worth up to $750,000 or renovate an existing one valued between $750,000 and $1.5million.
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