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Demand for mortgage loans fell further in September, especially from first-time buyers. The Australian Bureau of Statistics said the value of new home loan commitments fell 1.4% in September, due to a 2.7% drop in demand from homeowners. ABS finance and wealth manager Katherine Keenan said this was the fourth month in a row that homeowners’ home loans had declined. The number of new loan commitments for first-time buyers experienced the eighth consecutive decline, down 5.6% on the month, 27.1% lower than in September 2020. However, the value of home loans for investors rose 1.4% to 83.2 percent higher than a year earlier. Other data released on Monday suggests that the surge in Australian house prices is showing signs of slowing after climbing more than 20% last year. The CoreLogic Home Value Index rose 1.49% in October, having steadily lost momentum since peaking at a monthly growth peak of 2.8% in March. Perth posted its first negative monthly result since June of last year, with values ​​down 0.1%. On the other end of the spectrum, Brisbane has emerged as the fastest growing market with property values ​​up 2.5% in October. Nationwide house prices rose 21.58 percent during the year, with more than half of the nation’s capitals posting an annual access growth rate of 20 percent. CoreLogic’s research director, Tim Lawless, says slowing growing conditions are a factor in worsening housing affordability, increasing supply levels and less stimulus. He said first-time homebuyers are becoming a smaller and smaller component of housing demand as prices continue to outpace wage growth, as new listings have surged and market-oriented stimulus packages. housing such as HomeBuilder and stamp duty concessions have now expired. “Combining these factors with the subtle tightening of credit ratings slated for Nov. 1, it is highly likely that the real estate market will continue to gradually lose momentum,” Lawless said. Last month, the Australian Prudential Regulation Authority increased the minimum interest buffer it expects banks to use when assessing the usefulness of mortgage loan applications. He wants banks to rate claims at a rate three percentage points higher than the offered interest rate product instead of 2.5 percentage points previously. “With the bottlenecks lifted and expectations of a rebound in the economy, APRA felt that the balance of risks had shifted such that a rapid adjustment in operating standards was warranted,” said the APRA President Wayne Byres at a Senate hearing last week. NATIONAL CORELOGIC HOUSES VALUE INDEX FOR OCTOBER (month, annually) National – up 1.49 percent, up 21.58 percent Sydney – up 1.5 percent, up 25, 23 percent Melbourne – up 0.99 percent, up 16.37 percent Brisbane – up 2.54 percent percent, up 22.30 percent Adelaide – up 2.0 percent, up 20.07 percent Perth – down 0.11 percent, up 16.37 percent Hobart – up 2.0 percent, up 28.06 percent Darwin – up 0.42 percent, up 19.28 percent Canberra – up 1.94%, up 25.52% Capitals combined – up 1.38%, up 20 , 82% Regional combined – up 1.87%, up 24.29% (Source: CoreLogic) Australian Associated Press
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Demand for mortgage loans fell further in September, especially from first-time buyers.
The Australian Bureau of Statistics said the value of new home loan commitments fell 1.4% in September, due to a 2.7% drop in demand from homeowners.
ABS finance and wealth manager Katherine Keenan said this was the fourth month in a row that homeowners’ home loans had declined.
The number of new loan commitments for first-time buyers experienced the eighth consecutive decline, down 5.6% on the month, or 27.1% less than in September 2020.
However, the value of home loans to investors rose 1.4 percent to 83.2 percent higher than a year earlier.
Other data released on Monday suggests that the surge in Australian house prices is showing signs of slowing after climbing more than 20% last year.
The CoreLogic Home Value Index rose 1.49% in October, having steadily lost momentum since peaking at a monthly growth peak of 2.8% in March.
Perth posted its first negative monthly result since June of last year, with values ​​down 0.1%.
On the other end of the spectrum, Brisbane has emerged as the fastest growing market with property values ​​up 2.5% in October.
Nationwide house prices rose 21.58 percent during the year, with more than half of the nation’s capitals posting an annual access growth rate of 20 percent.
CoreLogic’s research director, Tim Lawless, says slowing growing conditions are a factor in worsening housing affordability, increasing supply levels and less stimulus.
He said first-time homebuyers are becoming a smaller and smaller component of housing demand as prices continue to outpace wage growth, as new listings have surged and market-oriented stimulus packages. housing such as HomeBuilder and stamp duty concessions have now expired.
“Combining these factors with the subtle tightening of credit ratings slated for Nov. 1, it is highly likely that the real estate market will continue to gradually lose momentum,” Lawless said.
Last month, the Australian Prudential Regulation Authority increased the minimum interest buffer it expects banks to use when assessing the usefulness of mortgage loan applications.
He wants banks to rate claims at a rate three percentage points higher than the offered interest rate product instead of 2.5 percentage points previously.
“With the bottlenecks lifted and expectations of a rebound in the economy, APRA felt that the balance of risks had shifted such that a rapid adjustment in operating standards was warranted,” said the APRA President Wayne Byres at a Senate hearing last week.
NATIONAL CORELOGIC HOUSES VALUE INDEX FOR OCTOBER
National – up 1.49%, up 21.58%
Sydney – up 1.5%, up 25.23 percent
Melbourne – up 0.99%, up 16.37 percent
Brisbane – up 2.54%, up 22.30%
Adelaide – up 2.0%, up 20.07 percent
Perth – down 0.11 percent, up 16.37 percent
Hobart – up 2.0%, up 28.06 percent
Darwin – up 0.42%, up 19.28%
Canberra – up 1.94%, up 25.52%
Combined capitals – up 1.38 percent, up 20.82 percent
Regional combined – up 1.87 percent, up 24.29 percent
Associated Australian Press
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