According to statistics provided by the Loan Market Group, First home buyers are finally awake after a long period of hybernation. This segment of the home loan market has been the most active with the Loan Market Group during the month of October.
For the first time in over two years the mortgage broker has had over 51 per cent of their home loans inquiries coming from First Home Buyers.
First Home Buyers in every state of Australia were looking for home loans and trying to determine what they can afford to buy.
Tasmania had the highest number of home loan enquiries with 71 per cent followed by Queensland on 54 per cent, Victoria 53 per cent, the Australian Capital Territory 50 per cent, South Australia 48 per cent, Western Australia 44 per cent and the Northern Territory 41 per cent.
First Home Buyers are undoubtedly encouraged by declining property prices with some areas loosing as much as 20% on the prices of a year ago. Furthermore the cheap home loans fixed interest deals on offer through most lenders during October are making it easier for First Home Buyers to afford to purchase.
Mr Rushton said the end of stamp duty concessions for first home buyers in New South Wales from the end of 2011 are boosting activity in that state.
There are finally some signs of optimism and more confidence from that segment of the market. Further rate cuts from the RBA predicted in months to come, would help to build First Home Buyer confidence.