Sales transaction of residential property in Australia increased by 10.9% in August 2010 compared to the previous month as first time buyers returned to the market according to the Australian Finance Group (AFG).

Sales to first time buyers climbed for the second consecutive month as they rose from 9.5% of the market in June to 11.7% in August. The trend was strongest in New South Wales where sales to first time buyers made up 15.5% of all sales, up from 11.7% in June.

Kevin Matthews, executive director for mortgage broker AFG, said: “We now have two months of data which show that first home buyers are coming back. With property prices in many areas having stabilised, and some lenders prepared to lend up to 95% of the property’s value, property is becoming more accessible to first home buyers and more attractive to investors.”
Property investor activity varied across the states, with New South Wales and Victoria topping the market. Almost 37% of all mortgages sold in New South Wales came from investors, while in Victoria they accounted for 36.4% of all the sales. By comparison, investor confidence in the mining states of Queensland and Western Australia remained weak, largely due to the uncertainty over a possible mining super tax.