The latest ABS figures show new housing loan commitments fell 6.4% in April to $31 billion with the value of new housing loans falling to 7.3% for owner-occupier lending and 4.8% for investor lending.
Real Estate Institute of Australia (REIA) President, Mr Hayden Groves said the figures are the largest falls in the past two years and reflect the rising costs of living and interest rate rises.
“Despite this, the value of new owner-occupier loan commitments is still 44% higher than it was two years ago and 113% higher for investor loans,” he said.
Mr Groves said the falls are typically higher in New South Wales and Victoria down, 12.6% and 9.7% respectively.
He said that since the RBA moved on interest rates last month, market sentiment has become more cautious amongst buyers.
Mr Groves added that the upcoming REIA Housing Affordability Report will offer further insights into affordability issues facing Australians.
“We expect the number of first home buyers has continued to decline despite the implementation of government grants and incentives.”
REIA will release its latest Housing Affordability Report on Wednesday 8th June.
