In September, loans to owner-occupiers rose by 3.2 percent compared to the previous month, up 5.6 percent from a year before. “The pick-up in home lending shows that the market reached the bottom of this cycle in April 2019, during the Federal Election campaign,” says HIA Economist, Angela Lillicrap.
“Total lending is up from a low point in April 2019. This result is mirrored in new home sales data which also shows April as the bottom of this cycle. The upturn since then has been very modest and best described as a stabilisation in conditions,” stated HIA’s Chief Economist, Mr. Tim Reardon.
In the September quarter, mortgage loans to households building and buying new homes increased by 1.9 percent, while loans for established dwellings increased by 9.2 percent for the quarter. Monetary easing initiatives, including interest rate cuts, tax cuts and relief from APRA’s borrowing limits, have a positive impact on the housing market. First Home Loan Deposit Scheme from the government will also help qualifying first-time home buyers enter the market from January onwards.
“This result is consistent with other leading indicators that show that the decline in new home sales activity that has been evident for more than a year, has started to ease. There are encouraging signs that the market is stabilising at relatively strong levels,” says Ms. Lillicrap.