The latest Australian Bureau of Statistics housing finance data reveals that the share of first-home buyers in the market is steadily increasing, says the Real Estate Institute of Australia.

“The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased to 18.0 per cent in November 2017, the highest proportion since October 2012," said REIA president, Malcolm Gunning.

The proportion is higher than the decade average of 17.9 per cent.

The number of loans to first-home buyers was 11,091, the highest number since December 2009 when the government ended first-home-buyer incentives as part of the response to the GFC.

“It is pleasing to see the increased presence of first home buyers. The figures show that owner occupiers and first home buyers are responding to more stable conditions and, in the case of first home buyers, state government incentives,” said Gunning.

In contrast, the value of investment housing commitments decreased by 0.3 per cent in November in trend terms. The decline follows falls in the previous ten months, and investment in housing is now well down from its 2015 peak.

"While lending by owner occupiers is still up on a year ago, finance provided to investors is down sharply over the year," said Craig James, chief economist CommSec.

The average home loan was $388,900 in October, an increase of 3.3 per cent on a year ago and a record high.

"Home prices might be declining but lending is still increasing," said James. 

"With interest rates at record lows and job security improving, Aussies felt comfortable enough to increase their mortgage debt in November.

Read more about first-home buyers:

Affordability is improving, and first-home buyers are back in the market

First-home buyers at highest levels since 2013: REIA

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