First-time homebuyers continued to benefit from favorable market conditions, with their participation reaching a level not seen in a decade, according to the latest NAB study.
During the October quarter, the first segment of homebuyers accounted for the only loan growth. In fact, NAB figures show that the segment's fundraising activity increased by 21%.
Andy Kerr, director of homeownership at NAB, said data indicates that many first-time homebuyers are getting their dream home sooner than they are. thought it was possible.
"Demand was supported by historically low interest rates and more government support, like the First Home Loan Deposit Scheme and HomeBuilder," he said.
"A brief pullback in real estate prices has also helped FHBs as the uncertainty of COVID-19 has put many plans on hold, with investor demand slowing noticeably."
Kerr added that the low interest rate environment, which is expected to persist over the next three years, would ensure continued growth for first-time homebuyers.
"We expect this demand to continue through 2021, especially as current conditions make buying cheaper than renting for many potential new owners," did he declare.
Geographic data from the NAB has also highlighted the areas that first-time homebuyers turn to when it comes to buying a home.
The strongest growth in first-time home loans was recorded in Queensland, with segment activity increasing 39% over the three-month period. Western Australia followed closely behind with 37%.
Activity in other states, except Tasmania and Victoria, also remained high. However, it is critical to note that even the two weakest states reported growth in first-time homebuyers loans, albeit only 3%.
NAB data further supports the increasingly noticed shift of attention to regional areas. In fact, regional markets across Australia reported a 44% increase in first-time homebuyer activity, with the regional New South Wales posting the most substantial gain at 57%.
Kerr explained that the COVID-19 pandemic has changed the housing preferences of many homebuyers, and he expects it to last.
"The flexible working arrangements implemented due to COVID-19 are encouraging many Australians to view a tree or sea change as easy access to the CBD goes down the priority list," a he declared.
"Many see the potential for more land and a more relaxed lifestyle with easy access to areas like the Blue Mountains in New South Wales and Great Ocean Road in Victoria proving to be very popular. . "
Top suburbs:
greenwood
,
coorparoo
,
Alexandra Hills
,
Canterbury
,
Wall
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