New data shows that housing sentiment is improving after buyers, particularly first home owners look to take advantage of the favourable market conditions.
Figures released by the Australian Bureau of Statistics (ABS) highlight that new loan commitments grew for the fourth consecutive month, rising by 5.9% to $17.3 billion in September.
Adrian Kelly, President of the Real Estate Institute of Australia, said that improving buyer confidence, low-interest rates and the introduction of government incentives such as the HomeBuilder scheme were behind the rise in results.
“The seasonally adjusted value of new loan commitments for owner-occupied housing rose 5.9 per cent in September and 25.5 per cent for the year, with the rise seen in all states and territories, except Victoria and the Northern Territory,” he said.
Western Australia, New South Wales and Queensland saw the largest increases in the value of new loan commitments whereas the impact of the pandemic saw a drop in figures in Victoria.
The fall by 8.8 per cent in seasonally adjusted terms in Victorian owner-occupier home loan commitments reflects decreased housing market activity in July and August when COVID-19 restrictions were imposed.President of the Real Estate Institute of Australia – Adrian Kelly
Approximately half of housing loan commitments were granted for the construction of new dwellings.
“This is the fourth consecutive monthly increase and is the highest level since October 2009 with all states and territories, apart from Victoria, Tasmania and the Northern Territory, displaying increases in owner-occupier first home buyers in September,” explained Mr Kelly.
The sustained recovery in lending is encouraging and reflects the market response to the current conditions and improved borrowing conditions with an expected interest rate cut tomorrow.President of the Real Estate Institute of Australia – Adrian Kelly