Housing Investor Lending hits 12-Month High
“The value of lending to housing investors grew by 2.2% during November bringing activity on this side of the market to its highest point in a year,” said Master Builders Chief Economist Shane Garrett.
The ABS published its latest set of data on home lending earlier today which also covers loans to First ³Ô¹ÏÍøÕ¾ Buyers and other owner occupiers.
“The positive result for investor lending is consistent with other indicators which are all telling us that the housing market has entered the early stages of a recovery following a difficult couple of years.
“The renewed enthusiasm amongst investors for Australian housing is the result of a return to solid house price growth in key markets as well as the more attractive financing conditions flowing from three RBA interest rate cuts last year,” Shane Garrett said.
“In contrast, the number of loans to First ³Ô¹ÏÍøÕ¾ Buyers declined for the second consecutive month during November. This should not be a cause for concern: it is likely that many FHBs have deliberately postponed their entry into the market until after 1 January, when the new First ³Ô¹ÏÍøÕ¾ Loans Deposit Scheme opened for business,” he said.
