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Home loan demand, a leading indicator of real estate demand, remained strong towards the end of 2016, with new data showing approvals increased 0.9 per cent in November.
Australian Bureau of Statistics data reveals 54,603 home loans were written in November, up from 54,096 the month prior.
Mortgage Choice chief executive officer John Flavell says the last time more than 54,500 home loans were approved in one month was in July 2016.
He said this suggested the threat of higher interest rates is “doing little to stifle home loan demand”.
November saw an increase in approvals for dwellings construction as well as the purchase of new and established properties.
“As per the data, there was a 2.3 per cent jump in the number of loans approved for the construction of dwellings. Meanwhile, the number of loans approved for the purchase of new and established dwellings increased by 3.3 per cent and 0.6 per cent respectively,” Mr Flavell said.
He added that he was anticipating more lift in the demand for home loans.
“December is a notoriously strong month for home loan inquiries and approvals, as many borrowers look to buy property and settle in their new home during the festive period.”
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