First-home buyer confidence appears to have improved as the annual decline in the segment's financing moderated, according to a new analysis by PRDNationwide.
During the June 2019 quarter, the number of first-home buyer loans across Australia went down by 7.6% from the same period last year. While first-home buyer loans remain on a downtrend, the recent decrease was an improvement from the preceding quarter’s fall.
"A return to a single-digit percentage figure suggests that first home buyer confidence is slowly improving. This is good news, particularly post the federal government election," PRDNationwide said.
In the same quarter, the home-loan affordability index improved.
"This would have assisted first home buyers, particularly as traditionally more expensive states such as New South Wales and Victoria experienced an increase in the home loan affordability index, of 2.3% and 5.1% respectively," PRDNationwide said.
Western Australia experienced the most substantial gains in home-loan affordability, making it a viable place not just for homebuyers but also for investors looking for more affordable options.