Loans rose for the primary time in three months in February as competitors between first home consumers and traders heats up.
The complete worth of recent housing loans to traders rose 1.2 per cent in February 2024, in response to knowledge from the Australian Bureau of Statistics (ABS).
A complete of $26.40 billion in new home and funding property loans had been taken out in February, up by 1.5 per cent from January.
ABS head of finance statistics Mish Tan stated the worth of recent investor loans in February was 21.5 per cent larger in comparison with a 12 months in the past.
“This made up over half of the growth in total new loan commitments over the past year,” she stated.
New commitments for housing excluding refinancing
The worth of recent owner-occupier loans was 9.1 per cent larger in comparison with a 12 months in the past, whereas the worth of owner-occupier first home purchaser loans was 20.7 per cent larger over the identical interval.
The complete variety of new owner-occupier loans rose 0.9 per cent in February. Meanwhile, the variety of owner-occupier first home purchaser loans rose 4.3 per cent and had been 13.2 per cent larger in comparison with a 12 months in the past.
The worth of recent mortgage commitments for complete fastened time period private finance fell 0.9 per cent to $2.4 billion. This was pushed by a fall of two.7 per cent in lending for the acquisition of highway autos.
The knowledge indicated competitors between first home consumers and traders was rising whereas upgraders had been holding out for fee cuts, in response to monetary comparability web site Canstar.
“Upgraders and downsizers were the least active in the market in February, rising by only 0.4 per cent during the month, with $11.95 billion in loans settled,” Canstar stated.
“Meanwhile, first home buyers are showing a willingness to battle it out with investors, with activity for first-time buyers up 20.7 per cent compared to February, 2023.”
