The April 2021 Lending to Households and Business figures released today by the Australian Bureau of Statistics show that the value of new loan commitments for housing rose for the second consecutive month after a brief fall in February which came after eight consecutive months of growth, according to the Real Estate Institute of Australia (REIA).
The April 2021 Lending to Households and Business figures released today by the Australian Bureau of Statistics show that the value of new loan commitments for housing rose for the second consecutive month after a brief fall in February which came after eight consecutive months of growth, according to the Real Estate Institute of Australia (REIA).
“The seasonally adjusted value of new loan commitments for owner occupier housing increased by 4.3 per cent in April and was up 68.2 per cent for the twelve months, setting a new record. The value of new loan commitments for the purchase of existing dwellings rose 9.2 per cent with loan commitments for construction and the purchase of new dwellings falling in April”, said REIA President, Adrian Kelly.
“Rises in the value of new loan commitments for owner occupier housing were seen in all states and territories except Western Australia, with New South Wales and Victoria having the largest increases of 8.6 and 8.4 per cent respectively.
“Loans to investors increased for the eleventh consecutive month with the value of loan commitments for investor housing increasing by 2.1 per cent for the month and 63 per cent for the year on the back of improving rental market conditions. This is the highest level since August 2017 with increases in all states and territories with the exception of Tasmania and the Australian Capital Territory. The largest increase of 7.1 per cent was in Queensland,” he said.
REIA’s Real Estate Market Facts will be released on Wednesday 9th June containing details of changes in rents in all capital cities and major regional centres.
Mr Kelly said the number of owner occupier first home buyer loan commitments fell for the third consecutive month. The April fall of 1.9 per cent is still 59.6 per cent higher than twelve months earlier. Owner occupier first home buyer loan commitments accounted for 32.9 per cent of all owner occupier commitments excluding refinancing, down from January’s 36.5 per cent when lending for first home buyers was at its highest since May 2009.
“With housing finance figures being a leading indicator of market activity this suggests a greater interest by buyers during the normally quieter winter months. This makes it a good time for listing which many owners are doing with an unseasonal increase in listing enquiries. The coming months should see high levels of market activity,” concluded Mr Kelly.
Similar to this:
Overall housing and rental affordability declines - REIA
REIA - Social housing commitment welcomed for the most vulnerable
REIA welcomes property & small business focus in Budget 2021