Property prices may be cooling across the country, but that certainly hasn’t slowed down buyer demand. In fact, it seems to be having the opposite effect.
The number of home loan approvals went up by 1.1 per cent to 53,037 from April 2018 to May 2018, according to the latest figures from the Australian Bureau of Statistics.
This shows that despite property prices falling more people are committing to home loans, perhaps because they are finally able to pick up a bargain.
Data from the ABS also showed that it’s not first home owners that accounted for the most recent increase in housing commitments.
The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments was unchanged from April to May (at 17.6%).
However there was strong growth in first home buyer commitments from July 2017 to November 2017, this was likely driven by changes to first home buyer incentive programs in New South Wales and Victoria.
Between April and May 2018, first home buyer loans went up by $1,800 to $344,600 and the average loan size for all owner occupiers went up by $1,500 to $400,100.
In total, $31.9 billion worth of dwelling commitments were made in May 2018, an increase of 0.5 of a percentage point from April.
Home loans rising as property prices cool
While more people may be buying, property prices are starting to head downwards. CoreLogic has recently reported that dwelling values have gone down for the first time since 2012.
More and more homebuyers are seeing that now is a great time to get into the market while property prices are stabilising and while interest rates remain extremely low.