Investors drive record January

Investors drive record January

by 0 comments

Investor levels are at a six-year high as activity reaches over 50 per cent in New South Wales, according to new data.

According to AFG's Monthly Mortgage Index, investor activity as a proportion of all home loans processed in NSW reached an all-time high in January.

At 53.4 per cent, investor levels in the state are the highest in the six years AFG has been running its index.

Overall, the home loan market was very strong in the first month of the year with AFG recording its best ever January, processing over $2.58 billion of home loans - an increase of 14 per cent on January 2013.

After a strong start to the year, AFG general manager of sales and operations Mark Hewitt said he expects volumes to increase in the next few months.

“With most people expecting the historically low rates to remain with us for much of the year, we’re preparing for even higher levels of activity now that people are getting back to work from the summer holidays,” he said.

The AFG data also shows a jump in the proportion of first home buyers - up from 10.2 per cent in December to 11.8 per cent in January.

This rise was mainly driven by a resurgence in Victoria, from 8.7 per cent in December to 11.2 per cent in January, as well as a rise in WA, where first home buyers grew from 21.8 per cent in December to 24.2 per cent of all new home loans in January.

The AFG data highlighted the division between states offering grants versus those that don’t, with South Australia first home buyers comprising 15.5 per cent of all buyers, while in Queensland this proportion was 6.5 per cent and in NSW 3.4 per cent.

Meanwhile, the major banks reclaimed some market share from the non-majors in January, writing 76 per cent of all loans in January compared to 73.6 per cent in December.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?