First-home buyers continue to struggle to enter the housing market even as it grows, as investors take on record levels of home loan borrowing.

First home buyer loan approvals fell to a new record low in Victoria while lifting slightly in NSW in October, the Bureau of Statistics reported today.

Analysts are expecting the housing market to continue to strengthen in the new year, Credit:Jessica Shapiro

Nationally, home loan approvals for owner-occupiers rose a seasonally adjusted 1 per cent in October to 52,305, taking the annual growth rate to 13.3 per cent.

Across Australia, first-home buyer activity as a proportion of total borrowers lifted off the record low of 12.5 per cent in September, but remain subdued at 12.6 per cent in October.