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
