Latest ABS home loan data reports that the number of home loans approved for owner-occupiers in Australia increased by 2.7 percent over December.
All states recorded a rise in home loan activity and is a significant rebound following the falls reported over November.
New South Wales was the clear leader however in the recovery with home loans for owner-occupiers increasing strongly by 6.6 percent over December. Other capitals recorded more modest growth outcomes with the exception of South Australia where home loans increased by 4.5 percent over the month.
Tasmania recorded the strongest annual growth rates for owner-occupied housing loans seasonally adjusted over 2014 at 9.3 percent. Next best was Queensland at 7.0 percent with NSW up by 5.7 percent and Victoria at 3.2 percent in front of only South Australia recording annual growth of 2.0 percent.
National residential investor loan activity has surged to a new monthly record high following the falls recorded over November. Investor finance seasonally adjusted increased by 6.0 percent over December to $12.6 Billion. National home investor finance has increased by 24.6 percent over 2014 reflecting strong activity from this sector. Lower interest rates are set to intensify investor activity particularly in the Sydney market.
Residential investor finance now accounts for a record 41 percent of all home loan activity
Dr Andrew Wilson is Domain Group Senior Economist Twitter@DocAndrewWilson