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Brokers will be buoyed by the news that housing finance activity soared in december – the result of lower interest rates, falling prices and federal government incentives.
The total number of owner-occupier home loans for december rose 6.4 per cent to 52,974 and a total value of $18.633 million, according to abs data.
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The number of home loans for new dwellings rose significantly, by 15.2 per cent to 2,275.
First home buyer commitments also passed the 25 per cent mark in response to the federal government’s beefed-up first home owner grant (fhog), climbing to 25.4 per cent.
John Kolenda, group executive director at loan market group, said the seven year high in first home buyer commitments showed the market would benefit from the government extending the fhog boost until at least the end of the year.
“the latest australian bureau of statistics figures underline that the increase to the first home buyer’s grant has been one of the most successful measures in the first $10.4 billion economic stimulus package announced last october,” mr Kolenda said.
“extending it will have a positive flow-on effect for the entire housing market.”
At a glance
Owner-occupier loans rise 6.4 per cent
First home buyer commitments climb to 25.4 per cent
Extending beefed up FHOG will benefit entire housing market
