In good news for the property industry, new loan commitments have reached record levels as Australia marks six straight months of positive borrowing growth.
Weighing in on the new figures, Real Estate Institute of Australia (REIA) president Adrian Kelly said the new figures “confirm the resilience of the housing market, with investors, first home buyers and owner-occupiers all active in the market”.
The REIA has highlighted several aspects of the data, noting the seasonally adjusted value of new loan commitments for owner-occupier housing rose by 5.6 per cent in November and 23.7 per cent for the year, with an increase in new loan commitments occurring across all states and territories.
New loan commitments for existing dwellings were marked as the largest contributor to the November rise, with a total increase of 5.9 per cent.
Construction loan commitments also rose by 5.6 per cent — meaning loans for construction have increased by 75 per cent overall since the government’s HomeBuilder grant was announced back in June.
Mr Kelly also observed a return to the market by investors, with the value of loan commitments for investor housing increasing by 60 per cent for the month — a 3.9 per cent increase for the year.
Noting limited stock hitting the market, and the current strong demand from buyers, Mr Kelly said “the market is likely to remain buoyant for the coming 12 months, defying the doomsday forecasts of last year”.