The number of first homebuyers getting home loans increased by more than 90 per cent over 12 months thanks to government stimulus payments.

Over the June 2009 quarter the amount of first homebuyers in the market increased by 19.4 per cent to reach 54,924, the highest level since the September quarter of 1991, according to the Real Estate Institute of Australia's (REIA) Deposit Power Housing Affordability Report.

With that growth, there was a total increase in first homebuyers over the year to the end of June of 94.3 per cent.

"The State and Federal Government incentives for first homebuyers appear to have worked in stimulating activity in the low to mid-end of the market," says Deposit Power national manager Keith Levy.

The total number of loans for all buyers increased by 20 per cent in the June quarter, increasing to 143,292 from 119,358 in the previous quarter.

Despite a drop in the cash rate of 0.25 per cent in the June quarter, the report found that housing affordability fell slightly.

REIA president David Airey says housing affordability decreased due to median house prices.

"Median house prices increased nationally over the June quarter, which affected the average loan size, which in turn affected the amount of home loan repayments, offsetting the impact of the lower interest rates levels," he says.

The Australian Capital Territory remains the most affordable state or territory in which to buy a home, while New South Wales remains the least affordable.

Tasmania showed the biggest improvement in housing affordability, with the proportion of income required to meet loan repayments decreasing by 0.6 percentage points.