Investors are backing the housing market with loans to investors rising by 6.1% in January, Real Estate Institute of Australia (REIA) President, Hayden Groves said.
The latest Australian Bureau of Statistics (ABS) figures show that new investor housing loan commitments hit a record high of $11.0 billion (seasonally adjusted) in January 2022, which is a whopping increase of 6.1%
Mr Groves said housing affordability, in the face of rising inflation, continues to be a concern with the average loan rising $17,000 to a record high of $619,000.
He said the rise in investor loan commitments was concentrated in New South Wales which was up 9.8% and Victoria which grew by 11.1%.
“The share of investor lending to all new housing loan commitments was around one third of the total, in line with longer-term averages,” he said.
Mr Groves added that REIA will be releasing its Housing Affordability Report next week which is indicating further falls in loans to first home buyers.
