Home loan demand has continued to grow, new data has revealed.
According to the Australian Bureau of Statistics’ (ABS) latest Housing Finance data, 57,161 home loans were approved over the month of August, up 1% from the previous month.
“August marks the fourth consecutive month that we have seen growth in the total number of monthly home loan approvals,” Mortgage Choice chief executive officer John Flavell said.
“This would suggest the housing market is alive and well and Australians still boast a healthy appetite for property.
“It would seem many Australians are wishing to take advantage of the historically low rate environment, which has resulted in greater home loan demand.”
Data from the ABS also revealed a lift in the total value of all dwelling commitments written through the month of August.
“Over $33 billion worth of loans were approved in August, up 2.1% on the previous month,” Mr Flavell said.
“The total value of all owner occupied dwelling commitments written rose 0.9% to just over $21 billion, while the total value of investment lending rose 4.3% to $12.63 billion.
“This lift in the value of investment lending does come as somewhat of a surprise when you consider that a lot of lenders have actively tweaked their policy and pricing in recent weeks in a bid to cool their level of investment activity.
“The fact is, demand for property remains strong. Australians are keen to take advantage of the low rate environment and turn their property goals into a reality.”
Looking forward, Mr Flavell said he expected to see continued demand for property.
“We are now in the heart of the notoriously hot spring selling season. The sun has come back out, rates are low and Australia’s lenders continue to compete aggressively for business,” he said.
“Given all of these factors, I wouldn’t be surprised to see continued strong demand for property over the coming weeks and months.”