The appetite for real estate credit increases

According to new figures released by the Australian Bureau of Statistics (ABS), new loans granted to homeowner and investor housing increased for the first time in more than a year.

The overall figures for June 2019 showed, seasonally adjusted, that the number of financial liabilities borne by the owner, without refinancing, rose by 0.4%, according to Adrian Real Institute president of Australia (REIA).

"There has been an increase in new loan commitments for owner-occupied housing for all states, but a decline for the territories. The value of housing investment commitments, excluding refinancing, increased by 0.5%, driven by the first increase in New South Wales since April 2018, "he said. he declares.

Loans granted to first-time owner-occupied home buyers also increased 2.1 per cent in June, recording an increase of five in the first six months of 2019, according to Kelly.

The June rate cut by the Reserve Bank of Australia supported growth, according to Maree Kilroy, an economist at BIS Oxford Economics.

"All segments of demand grew during the previous month. Loan volumes to first-time homebuyers increased by 2%, while valuation volumes increased 0.4% m / m in June, "she said.

According to Westpac analyst Matthew Hassan, the decline in uncertainty surrounding post-election housing tax policy has also contributed to growth, according to estimates.

New auction data also showed that sales and prices had risen from June to August, with the highest reconciliation rates being in July, he said.

According to Kilroy, another reduction is expected in the fourth quarter of 2019, which should provide an additional boost to housing credit.

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