December 09, 2016
After a strong uplift in home loan demand in September, new data from the Australian Bureau of Statistics found overall home loan demand actually fell slightly in October.
According to the latest data, 53,769 home loans were written throughout the month of October – down 0.8% from the 54,191 loans written the month prior.
Mortgage Choice chief executive officer John Flavell said while he wasn't surprised to see a slight moderation in overall home loan demand, it was important to remember that total demand remained strong by historical standards.
“Over 53,000 home loans were approved over the month of October, which is a very strong result,” he said.
“Prior to May 2015, it was rare to see more than 53,000 home loans approved in one month.
“Furthermore, the total value of all dwelling commitments was more than $32 billion, which is another strong result.”
Mr Flavell said while the total value of all dwelling commitments fell 0.2% throughout October, the value of all investment loans written actually jumped 0.7% over the month.
Looking ahead, Mr Flavell said home loan demand should rise slightly over the next couple of months.
“November and December are historically very busy months for the property market,” he said.
“Many people want to buy a home and be settled before the festive season, so they tend to start the home loan process in November or December.
“Furthermore, data from CoreLogic shows property prices across the combined capital cities continue to rise month on month, so I wouldn't be surprised to see a lift in the total value of all dwelling commitments.”
According to the latest data from CoreLogic, property values across the combined capital cities rose 0.2% throughout November, taking prices 9.3% higher over the last 12 months.
“I would expect to see a similar level of property price growth in 2017,” Mr Flavell said.
“So long as rates remain low and demand continues to outstrip supply, we can expect to see continued growth in property values.”
