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First home buyers gaining strength

Lending lifted again in July, according to data released this week by the Australian Bureau of Statistics.

The figures show that the number of commitments for owner-occupied housing finance rose 0.6 per cent in trend terms.

Lending rose 2.0 per cent for both the construction and purchase of new dwellings respectively, and 0.3 per cent to buy established dwellings.

Between June 2017 and July 2017, the number of owner occupied loans rose in Victoria (up 1.0 per cent), New South Wales (0.6 per cent), Queensland (0.4 per cent), the Australian Capital Territory (1.0 per cent), and Tasmania (0.2 per cent). Falls were recorded in South Australia (down 1.5 per cent) and the Northern Territory (0.8 per cent), with Western Australia being flat.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 16.6 per cent in July 2017 from 14.9 per cent in June 2017.

The total value of lending excluding alterations and additions rose 0.1 per cent, in trend terms. Owner occupied housing commitments rose 0.7 per cent while investment housing commitments fell 1.0 per cent.