First homebuyers charge back into the real estate market

First home buyers are flooding back into the property market, seeing opportunities not witnessed since before the Covid pandemic.

First homebuyers are flooding back into the market. Picture: NCA NewsWire / Kelly Barnes

First home buyers are charging back into the real estate market nation wide, as home loan approvals for that sector return to highs last seen since before the Covid pandemic.

According to the latest figures from the Australian Bureau of Statistics for the March quarter, the value of new home loan commitments for first homebuyers is up a whopping 17.9 per cent year-on-year and up 4.4 month-on-month to a total of $5.19bn.

The number of new loan commitments are up 9.9 per cent year-on-year and 4.5 per cent month-on-month.

This is on the back of first homebuyers’ home loan approvals in the January quarter reaching their highest level since the Covid pandemic after record lows between 2021 and 2023.

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First homebuyers can see opportunity out there. Picture: realestate.com.au

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As they release their First Homebuyer Report 2024 – Unlocking the Home Ownership Dream, Head of Research for the LJ Hooker Group, Mathew Tiller, said: with the Reserve Bank of Australia looking likely to have completed its extended cycle of interest rate hikes, first-time purchasers appear to be considering options for entering the homeownership market.

“For many Australians, especially young people, the dream of home ownership has become increasingly elusive but the data is showing people are wanting to secure a property whether as a place to live or perhaps later as an investment,” Mr Tiller said.

According to the ABS, in March 2024 in seasonally adjusted terms for owner-occupier first home buyers, the number of new loan commitments:

+ at the national level rose 4.5 per cent to 9,918, following a 5.4 per cent rise in February. It was 9.9 per cent higher compared to a year ago.

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LJ Hooker Group Mathew Tiller_Head of Research expects first homebuyers to continue their charge through 2024.

+ in Victoria rose 5.8 per cent, in Queensland rose 4.2 per cent, in Western Australia rose 2.8 per cent, in Tasmania rose 12.9 per cent and in the Australian Capital Territory rose 1.6 per cent

in South Australia fell 5.9 per cent, in New South Wales fell 0.5 per cent and in the Northern Territory fell 14.5 per cent

+ Tasmania, Northern Territory, and Australian Capital Territory series are smaller and typically more volatile.

Mr Tiller said the figures points to a likely further rise in first homebuyer demand through 2024.

“The likelihood of further rate increases dissipates and we expect buyers, particularly those looking to purchase for the first time, to feel more confident about budgeting their future mortgage costs,” he said.

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Originally published as First homebuyers charge back into the real estate market