CHRISTMAS HOME LOANS HIT NEW HIGH, CHALLENGES REMAIN FOR FIRST HOME BUYERS

February 1st,2022

Today’s Australian Bureau of Statistics (ABS) figures show new home loan commitments hit a record high in December 2021.

Real Estate Institute of Australia (REIA) President, Hayden Groves said that loan commitments increased for owner occupiers and investors while first home buyer activity rose marginally for the second month in a row.

“While loans to first home buyers increased, over the year we have seen a dramatic reduction of 21.5%, reinforcing the need for governments to address both housing supply and affordability for first-time buyers.

“On a national basis, the average loan size grew by $6,000 to $602,000.

“REIA found in its December 2021 Housing Affordability Report that the proportion of income required to meet loan repayments has increased to a record 36.2% nationally.

“Lending commitments for housing rose to $32.8 billion with Victoria the strongest growing state increasing by 5.2%.

“Overall, the largest increases in new home loan commitments have been to owner occupiers and investors.”

Mr Groves said that investors remain confident in property markets across the country as demonstrated by their buying activity.

“A record $10.3 billion in investors loans were issued in December 2022 with the strongest investor loan growth in Victoria, New South Wales and ACT.

“However, as demand for the more affordable cities grows, we should see strengthening investor and owner-occupier momentum in Brisbane, Adelaide and Perth where rental shortages are positively impacting home prices,” he said.