First-home buyers are back.
According to the Adelaide Bank/Real Estate Institute of Australia (REIA) Housing Affordability Report released Thursday, first home-buyers make up a quarter of the owner-occupier market.
New South Wales saw the greatest increase in first home buyers, with numbers rocketing up 70.9% year on year in the September quarter.
The report found that a total of almost 29,000 first home buyers entered the market from July to September.
The national increase was 36% year on year.
REIA President Malcolm Gunning said that stamp duty concessions, tighter lending restrictions and low interest rates were the main factors luring first home buyers back to the market.
“This is the highest rate since September 2013 after dropping steadily over the past 5 years,” Gunning said in a media release.
The number of loans for first home buyers in South Australia increased 2% over the quarter and 12.6% year on year.
SA housing affordability improved, with the proportion of income required to meet monthly loan repayments decreasing 1.5% to 25.3% over the quarter. Year on year the decrease was 1.1%.
Rental affordability also improved slightly in SA, with the proportion of income required for rental payments decreasing 0.2% over the quarter and 0.7% year on year.