First-home buyers bigger part of housing market than investors for first time since records began
First-home buyers borrowed more money in May than investors - the first time they have been ahead since records began. There was a total of $6.47 billion borrowed from banks in May to buy houses, a decrease of $120 million at the same time last year.
Investors borrowed $1.14b and first-home buyers $1.15b.The Reserve Bank started its data series in 2014 and this is the first time that first-home buyers have borrowed more than mortgaged investors.
In August 2014, first-home buyers borrowed just $392m, compared to $2.4b for investors. First-home buyers are taking bigger mortgages, too. Buyers with a deposit of less than 20 per cent borrowed $473,373 on average in May, up by nearly $25,000 from last year.
Those with more than 20 per cent deposit borrowed an average $384,000.
There had been a trend for some time of first-home buyers becoming more of the market.