Australians are borrowing more money for property than ever, new data released by the Australian Bureau of Statistics showed today.
The total value of new home loan commitments reached an all-time high in November 2020, increasing 5.6 percent to $ 24 billion.
The value of mortgage loan commitments to new owners, not investors but people buying to live, rose 5.5% to $ 18.3 billion.
That’s almost a third higher than in November 2019, before the COVID-19 pandemic.
ABS head of finance and wealth Amanda Seneviratne said most of the money was going to existing homes.
“Existing home loan commitments increased 5.9 percent and were the largest contributor to the November increase in homeowner-occupant loan commitments,” said Ms. Seneviratne.
“The value of construction loan commitments grew 5.6 percent in November, up 75 percent from July. This follows the June implementation of the government’s homebuilders grant in response to COVID-19. .
“Other incentives from the federal and state government and ongoing low interest rates also contributed to the continued growth of new home loan commitments.”
The number of first-time homebuyer loan commitments increased 3.1 percent to 13,905, marking a stratospheric increase of 42.5 percent from the beginning of the year.
A large increase in home loans marks a return to shape for the Australian housing market, which was remarkably resilient during the worst of the pandemic.
In fact, it seemed that the lack of availability to view and buy houses simply stopped normal trading until sellers, agents, and buyers could get down to business normally.
“The number of residential property sales plummeted 40 percent during March and April, but ended the year with almost 8 percent more sales compared to the previous year as the number of buyers increased during the second half the year, “said Corelogic Research Director Tim Lawless. said.
“Despite the volatility, home values showed notable resilience, falling just 2.1 percent before recovering strongly during the final quarter of 2020.”
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