first home buyers
Despite rising house prices, momentum remains strong with first home buyers. Source: Canva.
  • Momentum remains strong, including with first home buyers
  • Nationally, just over half of first home buyers are more willing to build compared to two years ago
  • Government incentives still having a notable impact on first home buyers entering into the market

Despite several lockdowns across Australia, there is still strong momentum in the housing market, including for first home buyers, according to new findings from NAB.

“We recently saw our strongest month of home lending on record in June which is a sign of very strong demand,” said NAB Executive, Home Ownership, Andy Kerr.

“Confidence in the housing market continues to improve and that shows in the amount of activity we are seeing through mortgage applications.”

First home buyers

Well, momentum for first home buyers remains strong despite increasing prices.

More than one in two are willing to build or buy new builds compared to two years ago – ranging from 46% more likely to buy in NSW to 83% in the NT.

First home buyers are more likely to build/buy new builds compared to two years ago 

fhb two years ago
Source: NAB

During the June quarter, property professionals estimated that the overall market share of sales to owner-occupiers – the net balance of first home buyers – rose to 34.9% – a two year high.

NSW buyers were the most active in this segment at 38.5% followed by 37.5% in Queensland while Western Australia and South Australia were the least active at 30% each.

Extent government incentives are helping first home buyers into the market earlier

Source: NAB

In terms of the impact of government incentives on first home buyers, the Federal Government’s Home Loan Deposit Scheme is playing a major role in facilitating first home buyers to enter the market, especially in Victoria.

Extent rising house prices are starting to impact first home buyer activity 

rising house prices
Source: NAB

In terms of the impact of house prices on first home buyers, property professions agree the impact of this is high.

The impact is at its strongest in NSW followed by the ACT – not surprising given Sydney and Canberra both have median house prices in the million-plus range.

“We understand there are headwinds in slower population growth and the impact of rising house prices. However, we expect low rates and government programs like the First Home Loan Deposit Scheme to continue to drive a strong housing market.” 

Mr Kerr added activity remains strong despite the lockdown.

“Despite the current lockdowns impacting the lives of many Australians, there is still [an] appetite for conversations with customers to buy a home. More than a third of appointments in the last week were conducted via video.”

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