Finance for housing rose in May following a fall in the previous month, according to data released this week by the Australian Bureau of Statistics (ABS).
The latest figures show that the value of new housing loan commitments rose 1.7% to $32.4 billion in May 2022 (seasonally adjusted).
The value of new owner-occupier housing loans rose 2.1%, contributing 82% of the rise in total lending. Investor loan commitments rose 0.9%.
The value of new owner-occupier lending rose across most states and territories, the largest being Victoria (up 6.1%), Queensland (up 2.5%) and South Australia (up 2.8%). Western Australia fell 3.3% and the Northern Territory fell 7.3%.
The number of new loans to owner-occupier first home buyers rose 2.3% in May 2022. This was 31.6% lower compared to the same time last year, but remains 6.9% higher than February 2020 levels, prior to pandemic stimulus.
Loans fell in Western Australia (down 2.4%), Queensland (down 0.5%) and South Australia (down 1.5%).
The 0.9% rise in the value of new investor loans was driven by New South Wales (up 3.1%) and Victoria (up 2.8%). The largest fall was in Queensland (down 4.0%), which was 20.5% lower than its all-time high in March 2022 yet remains 131.5% higher than February 2020 levels.
ABS head of Finance and Wealth Katherine Keenan said that key lenders attributed the rise in May to a clearing of processing backlogs.
“The rise in May followed a revised fall of 2.8% in April, when the proximity of Easter and ANZAC day public holidays reduced the processing of loan applications”, she said.
