Home Loan Statistics and Data
The Australian Bureau of Statistics’ latest reports say that home loan approvals increased in June by 0.5 per cent from May this year. This marked the second month in a row where home loans were in demand.
Usually, winter is a slow period across the Australian housing market, so to experience such an increase in home loans is considered promising for the property market, but also the Australian economy as a whole.
Since the interest rates remain low, the costs of borrowing money for home loan is inexpensive right now, which is fueling the housing market. This fuel may be responsible for ABS reports that also showed an increase of 0.8 per cent in the value of dwellings in the month of June.
Considering the substantial changes lenders have made in their investing prices and policies, the lift in investment loans comes as a surprise, even to some experts in the industry. The lift is being seen in both investment and owner-occupier loans.
The biggest surprise comes from the fact that Australian lenders have made it more and more difficult for potential investors to qualify for a loan, which is due to another fact that there are still lenders willing to write investment loans out there. They are hungry and enjoying the business right now.
Owner-Occupier Home Loan Rises by State
Tasmania – 38%
Queensland – 29.5%
ACT – 23.8%
Western Australia – 7.9%
The Northern Territory – 7.8%
New South Wales – 5.8 %
South Australia – 4.6 %
Victoria – 3.5%
Nationwide Home Loans Growth
Senior economist for the Housing Industry Association, Shane Garrett said that all territories and states across Australia have seen growth in home loans in June for owner-occupier loans. He said that the number of loans saw a rise of 3.6 per cent during the month of June, which was the fourth month in a row to see such expansion.
New home saw especially high records in 2016, which will probably see a reduction in the next few years left in the current decade.
According to Garrett, the HIA forecasts that new home starts will decline in the next two years by approximately 24 per cent from the peak by the year 2019. It’s predicted that new home starts will bottom out at about 175,000 starts a year.
Apartments will probably experience the highest reduction in building construction, mostly due to the excessive restrictions on foreign investors, vital to the market in the past, risking rental markets of ample supply-in-demand.
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