The Reserve Bank has warned that optimistic borrowers may lead to a debt blowout. But Assistant Treasurer and Minister for Housing Michael Sukkar says the Federal Government is pleased that high confidence levels, the strength of the economy and the improving unemployment rate are leading to a strong housing market – with first-home buyers are at 15- year highs and owner-occupiers dominant.
“On average, we’re looking at affordability being at 20- year highs, which is why first-home buyers are at such high levels and why owner occupiers are nearly three-quarters of the market,” Sukkar says.
He says owner-occupiers are in “an absolutely dominate position” because $220 billion has been saved by business and households during the pandemic. “A lot of that $220 billion is now finding its way into investment in housing,” Sukkar says.