Confirming what most agents have known for some time, a new report from Westpac has revealed that investors are filling the gap created by first home buyers.
According to the bank’s latest economic report, investor housing credit growth climbed considerably over the second half of 2009.
Investor credit growth, while not strong, is now reasonably robust with a 0.5 per cent rise in December 2009.
Over the December 2009 quarter investor credit growth soared 6.6 per cent, a dramatic improvement on the 2.0 per cent increase recorded in mid-2008.
The report also said credit growth to owner-occupiers moderated fractionally over the last month as new lending to First Home Buyers lost altitude, thanks to a wind back in the additional government bonus.
“Going forward, we expect a gradual firming of credit growth through 2010 from that in 2009 and then a stronger tone through 2011, against the backdrop of improving national income,” Westpac senior economist Andrew Hanlan said.