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Real estate industry

First Homebuyers in Australia Benefit from Increased Government Grant

Strategic Insights

— 1 min read

The Rudd government's decision to double the first homebuyers grant to $14,000 for existing homes and $21,000 for newly-built homes has paid off, with new figures showing a significant increase in the number of houses purchased by first homebuyers in November. The Australian Bureau of Statistics revealed that first homebuyers snapped up 11,665 new dwellings in November, a 10% jump from the previous month. This surge in sales has helped stabilize the housing market, which otherwise would have slowed down by about 1% from October to November.

Key Takeaways:

  • The first homebuyers grant was doubled to $14,000 for existing homes and $21,000 for newly-built homes as part of the Rudd government's economic security strategy in October.
  • Between October and November, the number of new houses purchased by first homebuyers jumped by almost 10 per cent, with 11,665 new dwellings sold in November.
  • First homebuyers represented 23.6 per cent of the housing market in November, up from 19.5 per cent in October.
  • The average loan for first homebuyers rose by $5,000 to $269,000, while the average loan for non-first homebuyers decreased by about $5,000 to $249,000.
  • Mortgage lenders, including the Loan Market Group, attribute the increased first homebuyers grant as the reason for the surge in interest from first homebuyers.
  • The increased grant has helped to stabilize the housing market, according to the Loan Market Group's director, John Kolenda.

Statistics:

  • 11,665 new dwellings were purchased by first homebuyers in November, a 10% increase from October.
  • 9,901 new dwellings were purchased by first homebuyers in October.
  • Total housing market sales decreased by about 1% from October to November.
  • First homebuyers represented 23.6% of the housing market in November, up from 19.5% in October.
  • The average loan for first homebuyers rose by $5,000 to $269,000.
  • The average loan for non-first homebuyers decreased by about $5,000 to $249,000.

Sources:

  • Australian Bureau of Statistics
  • AAP (Asia Pulse) report of January 14, 2009.
  • Loan Market Group, as cited by John Kolenda, director.

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