Surge in first home buyers amid housing boom

Sky News Business Editor Ross Greenwood says record levels of first home buyers are entering the housing market despite a housing boom, buoyed by record-low interest rates.

“This housing boom we’re seeing right now has been fuelled by interest rates falling into the ‘ones’ – it’s pretty easy right now to get a home loan for around 1.8 per cent,” he said.

“The fact is, there’s plenty of money sloshing around. The Reserve Bank is effectively printing money, distributing that through the banks, meaning the banks are awash with cash and capable of lending it.

“The interesting thing is whether those people jumping into the market have enough headroom before any downturn in the market comes in the future.”

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