First Home Owners Boost National Figures for July

The Rudd Government’s Nation Building Economic Stimulus Plan is continuing to support housing sector jobs and first home buyers with more than 137,000 Australians taking up the First Home Owners Boost by the end of July.

NSW is leading the way, with close to 50,000 applicants taking up the Boost by the end of July.

“With over 137,000 first home buyers entering the market since October 2008, the Rudd Government is pleased with the success of the First Home Owners Boost,” Ms Plibersek said.

“The First Home Owners Boost, combined with lower interest rates, has attracted tens of thousands of first home buyers into the market, right across the country.

“A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy as we battle the worst global recession in 75 years.

“The First Home Owners Boost is supporting more local jobs and helping more Australians realise their dream of home ownership.”

ABS Housing Finance data shows that the number of loans for new construction by owner/occupiers has increased by 55 per cent in the year from June 2008. The purchase of new dwellings is up 47 per cent for the same period.

First home buyers made up 27.1 per cent of all new loans for owner occupation in June – amongst the highest levels since the ABS began collecting this data in 1991.

The Rudd Government announced a six-month extension to the FHOB in the May Budget. The Boost will be reduced by half at the end of September. It makes sense to phase out measures such as the First Home Owners Boost to allow the market to re-adjust gradually as the grants reduce.