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Home lending rebounds

Owner-occupier lending rebounded in November, according to data released this week by the Australian Bureau of Statistics (ABS).

The latest figures show that the value of new loans for housing rose 6.3% to $31.4 billion in November 2021 (seasonally adjusted), following three months of falls.

New loans for owner-occupier housing rebounded 7.6% in November, for the first time since May 2021. It was also the biggest increase since January that year.

ABS head of Finance and Wealth, Katherine Keenan, noted that the increases were most noticeable in New South Wales, rising 9.6%, and Victoria, up 9.7%, corresponding with restrictions easing in those states in October and November.

At the national level, the average loan size for owner-occupier homes (which includes construction and the purchase of new and existing dwellings) rose to an all-time high of $596,000. Average loan sizes reached new highs in all states and territories except Western Australia.

Activity in the investor market was also strong, with the value of new loans to investors rising 3.8%, to a new all-time high of $10.1 billion.

“Investor lending has grown for the past 13 months, and accounted for around one-third of the value of new housing loan commitments in November 2021”, Keenan said.

“The previous investor lending peak in April 2015 accounted for 46% of new housing loan commitments.”

Increases in investor loans were strongest in New South Wales (up 7.8%), Queensland (up 5.0%) and Victoria (up 3.6%). All states rose, while both territories fell.

The number of new loans to owner-occupier first home buyers rose 1.9% in November 2021 (seasonally adjusted), breaking the decline since January 2021. This figure, however, was 17.4% lower compared with a year ago.

Victoria saw the strongest rise of 12.3% in first home buyer loans, followed by New South Wales (up 2.2%) and Western Australia (up 1.3%). Queensland fell 1.5% and South Australia fell 4.6%.

About Adam Nobel

Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA

adam@hugoalexander.com.au

0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 20 years experience in property investment, and 14 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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