First-home buyers are not giving up their dream of home ownership despite rising prices, with data released Friday showing they are borrowing more than ever to secure a home.
Home loan data from the Australian Bureau of Statistics shows first-home buyers took out an average loan of $340,200 in June – the highest on record and up 10.2 per cent ($31,600) on last year. Five years ago that figure was $287,900.
Domain Group senior economist Andrew Wilson said the overall 6.8 per cent quarterly jump in first-home buyer commitments could be "an early sign of improvement".
Even so, first-home buyers as a proportion of all loans were likely to keep falling, he said, due to the "extraordinary growth of investors' numbers". "It's going to be a much longer journey for first-home buyers, especially to get into that Sydney market."