According to fresh ABS information, demand for home loans dropped moderately generally in May, but payments to home buyers increased by 20% and financing for the building and buy of new homes grew by 2.3%. According to the ABS, a slight reduction 0.1% was approved in April for 46,600 home loans to owner occupants and a 12.4 percent year on decline.
The statistics pre date the effect of latest positive real estate occurrences, including the outcome of the Federal Election, two reductions in interest rates and the newly enacted tax cuts. Susan Mitchell, CEO of Mortgage Choice, claims the decrease in home loans in May was unsurprising. “In the lead up to the Federal Election there was still a lot of uncertainty,” she says.
In May, loans to FHBs rose nearly 20 percent against the overall trend, as further proof that sentiment is improving. “The market circumstances are very appealing to those who want to purchase their first home,” Mitchell suggests. “Looking forward, light appears for the property market at the end of the tunnel as the ABS information supports other indicators that the correction of the housing market is stabilizing.”