Demand for home loans strong despite cooling property market

first_imgA house for sale in the Brisbane suburb of Stafford. Image: AAP/Glenn Hunt.The number of loans for owner-occupiers rose by 2.1 per cent nationally, but fell by 1 per cent in Queensland. The total value of home loans approved in November rose 2.3 per cent to $33.5 billion.And while the value of investment loans rose by 1.5 per cent, they are still down 8.3 per cent compared to a year ago.More from newsParks and wildlife the new lust-haves post coronavirus22 hours agoNoosa’s best beachfront penthouse is about to hit the market22 hours ago HOTTEST RENTAL SUBURBS Mortgage Choice chief executive officer John Flavell said it marked the fifth straight month that more than 55,000 home loans were approved.“The last time we saw this kind of prolonged period of strong home loan demand was back in February 2016,” Mr Flavell said.“Today’s data would suggest the property market is robust, driven in large part by record low interest rates.” The RBA left the official cash rate at 1.5 per cent at its last meeting. Image: AAP/Dean Lewins. Mortgage Choice CEO John Flavell. Picture: David Geraghty.CommSec senior economist Ryan Felsman said the average home loan across Australia stood at a record high of $388,900 in October — up by 3.3 per cent on a year ago.Mr Felsman noted that while home prices nationally might be declining, lending was still increasing.“With interest rates at record lows and job security improving, Aussies felt comfortable enough to increase their mortgage debt in November.” NEW WAY TO PAY FOR RENTALS St George senior economist Janu Chan said the latest figures showed regulatory measures were continuing to curb investor demand and shift the favour towards owner occupier and first home buyers.She also noted underlying support for housing remained, thanks to the strong pace of population growth and low interest rates.At its last meeting for 2017, the Reserve Bank of Australia made the decision to keep the official cash rate on hold at a record low 1.5 per cent.center_img Home lending continues to rise, despite cooling house prices. Image: AAP/Dave Hunt.HOME loan demand continues to grow despite cooling house prices, as low interest rates keep the heat in the property market. The number of home loans approved in November rose a seasonally adjusted 2.1 per cent from October, according to the latest figures from the Australian Bureau of Statistics.Economists had been expecting a flat result.First home buyers appear to be the big winners from cooling home prices in Sydney and Melbourne, with the number of loans to this category of buyer rising from 17.6 per cent to a five-year high of 18 per cent.Economists say the increase was also boosted by state government measures to make it easier to get a foot on the property ladder. GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERE last_img read more

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