High interest rates and growing property prices are not deterring first-home buyers, with new analysis showing they are entering the market at a rate higher than the ten-year average.

PropTrack senior economist Eleanor Creagh, says Victoria is the state they are most focused on. Creagh says tighter rental market conditions are incentivising those with the means to purchase sooner and government support schemes, concessions and grants, and expanded eligibility criteria have also played a part in helping them to get into the market.

Australian Bureau of Statistics August 2024 lending indicators data shows that in August 2024, there were 3089 loans to first-home buyers in Victoria, 2333 in New South Wales, and 2076 in Queensland. Western Australia had 1294, South Australia 612, and Tasmania 175.

Creagh says the growth in loans to first-home buyers in Victoria is being driven by subdued price growth and more choice in that state. She says prices have not surged in Melbourne as they have in Brisbane, Adelaide and Perth.