Home Loan Lending Expected to Increase
The latest loan data is cause for optimism in the property investment market. According to the Real Estate Institute of Australia (REIA), the May 2019 Lending Households and Business figures released by the Australia Bureau of Statistics show this trend.
Figures for May 2019 show the number of loans to first home buyers increased by 0.8 eper cent and is the highest since November 2018, according to the REIA. The proportion of first home buyers as part of the total owner-occupied housing finance commitments increased from 18.2 per cent in April to 18.8 percent in May.
Meanwhile, the number of owner-occupied finance commitments, excluding refinancing, decreased by 0.5 per cent, which is the lowest it has been since August 2012.
The value of investment housing commitments, excluding refinancing, decreased by 1.5 per cent in May, at its lowest level since March 2009.
There is evidence of a boost in confidence in the real estate market after the federal election with higher levels enquiry, two cuts in interest rates and changes in APRA’s requirements. The month of May is most likely to mark the bottom of the lending cycle.
