First Home Buyers Fade From the Market But Housing Finance Skips Ahead of Expectations

Keperra House by A-CH (Atelier Chen Hung). National Architecture Awards – 2013. Image by Alicia Taylor.

Home Loan approvals are surging faster than expected.

Finance numbers from The Australian Bureau of Statistics for September show more Australians borrowing more to buy a place to live.

And first home buyers are still absent but overall housing finance by value and by number continues to beat expectations.

The number of owner occupied dwellings financed (seasonally adjusted) jumped 4.4 per cent in September to 51,928, beating expectations of around 3.5 per cent.

The value of finance rose 5.3 per cent to $15.781 billion.

However, the number of first home buyers continues to fall.

The number of first home buyer commitments fell to 12.5 per cent in September 2013 from 13.7 per cent in August.

The average loan size for first home buyers rose $4,800 to $290,800. The average loan size for all owner occupied housing rose $5,600 to $305,400 for the same period.

Western Australia and the Northern Territory were the only state and territory to record a fall.

The seasonally adjusted estimates rose in Victoria (up 650, 4.7%), New South Wales (up 323, 2.3%), Queensland (up 312, 3.4%), South Australia (up 103, 3.0%), Tasmania (up 47, 5.9%), and the Australian Capital Territory (up 22, 2.5%), while falls were recorded in Western Australia (down 48, 0.6%) and the Northern Territory (down 25, 6.7%).

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.