Invest
Home loan demand continues to tumble
The latest drop in home loan demand is a continuation of an 18-month decline, according to the latest data.
Home loan demand continues to tumble
The latest drop in home loan demand is a continuation of an 18-month decline, according to the latest data.
New ABS data reveals that home loan approvals took a 3 per cent hit from July, down to 53,109 approvals for August.
The overall value of home loans fell to a total of $31.4 billion, still down more than 5 per cent from its peak in April 2015, while investor lending fell 18.5 per cent on the same high.
Mortgage Choice chief executive John Flavell says these falls were occurring across the housing board.
“This drop could largely be attributed to a fall in both the number of home loans written for the purchase of new dwellings as well as the purchase of established dwellings,” Mr Flavell said.
According to the QBE Housing Outook report, investors entering the residential market has dropped, with investors making up 44 per cent of all residential loans, down 7 per cent on last year.
That's likely to improve housing affordability according to QBE lenders' mortgage insurance chief executive Phil White.
“It’s expected owner occupiers, including first home buyers, will be stepping in to pick up some of this opportunity in the market," he said.
Loans for established dwellings especially took a hit in August, experiencing a drop of 3.9 per cent on the previous month
Despite this, Mr Flavell remained confident that other factors would correct this dip in the coming months.
“It wasn’t all bad news however, with the number of home loans for the construction of new dwellings rising 3.7 per cent over the course of the month,” he said.
“Spring is a notoriously hot selling season [and] this, combined with the fact that interest rates continue to sit at record lows, I would not be surprised to see an uplift in the number of home loan approvals between now and the end of the year.”
RELATED ARTICLES
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
