Number of new owner-occupier loans still lags 2021 peak
The Real Estate Institute of Australia has welcomed the return of home buyers. However, the organisation expressed concern about the relatively low level of new owner-occupier loan commitments for housing, indicating potential future trends.
According to data released by the Australian Bureau of Statistics , the number of new owner-occupier loan commitments for dwellings experienced a 2.5% increase in August. Nevertheless, it remained 12.3% lower compared to the previous year.
REIA president Hayden Groves said that while the number of new owner-occupier loans seems to have rebounded to pre-pandemic levels, it still lags significantly behind the peak observed in January 2021.
“Of note is the number of refinancing loan commitments of owner-occupiers is falling, indicating that there is renewed confidence interest rates are stable,” Groves said.
The ABS data revealed a 5.4 percent decrease to 26,539 in refinanced owner-occupier loan commitments between lenders. This decline follows a record high reached last month as mortgage holders sought out the most favourable deals.
Groves also highlighted an increase in building approvals, with a 7% rise in the total number of approved dwellings in August, as adjusted for seasonal variations. This positive trend follows a 7.4% decline in July.
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In the broader context of the cost-of-living debate, Groves emphasised the need to address the pressures faced by aspiring first-home buyers and existing mortgage holders. He noted that much of the focus on the housing crisis has been centred around the rental market, and it is crucial to pay equal attention to the needs of homeowners and investors.
“The REIA Housing Affordability Report shows we are in the most challenging lending conditions for homeowners and investors since the Global Financial Crisis,” he said. “To help generate more investment and provide the support needed, government needs to carefully consider the needs of those affected as they have done in the same way for renters.”
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