Latest lending stats reflect house price growth as cost of living and credit bite
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The latest data released by the Australian Bureau of Statistics (ABS) show home buyers and investors are spending more as the cost of living and credit take their toll, according to Real Estate Institute of Australia (REIA) President Leanne Pilkington.
Ms Pilkington said the value of new loans to investors for housing rose by 5.6% in April to $10.9 billion, which is 36.1% higher compared to a year ago.
“The growth in the value of investor loans was strongest in New South Wales and Queensland, increasing 43.9% and 46.4% respectively since April 2023,” she noted.
The number of new owner-occupier first home buyer loans also increased, rising 3.0% in the month and marking a 10.8% increase compared to a year ago.
The value of new loans to owner-occupiers (excluding first home buyers) increased by 4.7% to $13.1 billion, up 18.8% since April 2023, while first home buyer loans rose 3.4% to $5.4 billion, an 18.6% increase compared to a year ago.
Despite the rising costs, Ms Pilkington highlighted that REIA’s latest Housing Affordability Report found the proportion of income required to meet average loan repayments fell 1.0 percentage points to 46.7% over the March 2024 quarter.
“The improvement can be attributed to stronger wage growth and a pause in interest rate hikes,” she said.