The data reveals that in seasonally adjusted terms, there was a 2 per cent decrease in the number of home loans to owner-occupiers over the month of November. According to the ABS, 39,661 home loans to owner-occupiers were approved in November.
The value of loans to owner-occupiers increased 1.6 per cent over the month of November and was up 10 per cent year on year.
The data also showed an increase in the value of loans to investors throughout the month of November, rising 2.2 per cent from October 2019. The value of loans to investors was up 1.6 per cent year on year.
Mortgage Choice Chief Executive Officer Susan Mitchell says the data reveals a solid gain across investors, owner-occupiers and first-time buyers. The growth in the value and number of housing finance commitments is consistent with the turnaround in the housing market in the second half of 2019.
“The increased activity in the housing market is being driven in part by competitive home loan interest rates and a lowering of serviceability assessment rates,” she said.
“Interestingly, the ABS data reveals there was a decline in the number of loan commitments to first home buyers throughout November, however the value of loans to first home buyers is up 2.1 per cent over the month and almost 20 per cent year on year.
“The fall over the month may be because first-time buyers were holding back from putting their buying plans in action as they waited for the Government’s First Home Loan Deposit Scheme to become available in January.
“I am eager to see what the ABS data will reveal as we head into 2020.
If the last few weeks are anything to go by, I suspect we may see an increase in demand from the owner-occupier and first home buyer segments as first-time buyers have rushed to reserve places in the First Home Loan Deposit Scheme.”
