May 11, 2016
Home loan demand fell slightly in March, new data has revealed.
According to the latest Housing Finance Data from the Australian Bureau of Statistics, 56,316 home loans were approved over the course of the month – down 0.9% from 56,825 in February.
Mortgage Choice chief executive officer John Flavell said while home loan demand did fall slightly in March, it remains high by long term averages.
“While the number of home loans written in March was down from the February result, it was still higher than the January result,” he said.
“Furthermore, the number of home loans written in March was actually 3.8% higher than the same month last year.
“This would suggest the property market remains alive and well. Demand is strong and will remain so for some time to come.”
Mr Flavell said the Reserve Bank's decision to cut the cash rate earlier this month should help to keep heat in the property market.
“With many of Australia's lenders passing on the Reserve Bank's rate cut, the cost of borrowing has become more affordable than ever before. As a result, I would expect to see continued demand for property.”
Over the month of March, more than $32 billion in home loans were approved – down just 0.2% on the month prior.
“While we did see a 1.2% drop in the value of owner occupied housing written over the course of the month, the value of investment loans actually climbed 1.5% to just over $12 billion,” Mr Flavell said.