Borrowing activity continues to grow

Housing finance activity continued to pick up in February 2009, with first home buyer market share increasing again to another record level.

According to the ABS, the total value of dwelling commitments increased by 1.3 per cent in February 2009, seasonally adjusted, to $19.229 billion.

The percentage of first home buyers as a proportion of all borrowers climbed from 26.5 to 26.9 per cent – the highest level recorded since the series commenced in 1991.

The tripled first home owner grant for new homes drove financing for new dwellings particularly higher, rising by 4.2 per cent over the month to 2,364 approvals.

Rising rental yields are yet to lure investors back into the market; investor finance dropped by 2.8 per cent to $4.720 billion.