October 09, 2015
Proving the property market remains alive and well, new data has found home loan demand hit a six year high in August.
According to the August Housing Finance Data from the Australian Bureau of Statistics, 55,677 home loans were approved over the course of the month – up 2.9% on the previous month.
Mortgage Choice chief executive officer John Flavell said home loan demand has not been this strong since September 2009.
“The last time more than 55,600 home loans were written in one month was back in 2009, when the boosted first home owner grant was in full swing,” Mr Flavell said.
“To see a similar level of home loan demand in today's market, when there is not only no boosted first home buyer incentives in place, but lenders are effectively trying to reduce their level of investment lending activity, is surprising and just goes to prove the strength of the housing market.”
In addition to seeing a spike in the number of home loans written over the course of the month, the total value of all dwelling commitments was also up.
Over the month of August, the total value of all dwelling commitments written exceeded $34 billion – up 3.5% on the previous month.
“Data from CoreLogic found property prices across the combined capital cities climbed 0.3% over the month of August. As such, it is no real surprise to see the total value of all dwelling commitments on the rise,” Mr Flavell said.
“Since the beginning of the year, the average home loan size for all owner occupied housing commitments has surged 7%, hitting $371,200.
“Moving forward, it is fair to assume the average home loan size will continue to grow so long as property prices continue to climb.”
Mr Flavell said he also expects home loan demand to remain strong over the coming months, as many lenders are currently offering some significant incentives to owner occupiers in a bid to win their business.