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Lowering credit rates, and APRA standards are pushing the value of property up leading to greater mortgage commitments, industry expert suggests.
According to CoreLogic’s Cameron Kusher since July 2019 financial commitment data has shown a sharp rise.
In July, owner-occupier first home buyer (FHB) commitments were $3.7 billion and was 20.9 per cent higher than the previous month and the greatest monthly value since November 2009.
There was $17.0 billion in commitments for owner-occupier non-FHB which was 17.2 per cent greater than the previous month and the highest monthly value since November 2018,” Mr Kusher explained.
Investor commitments were 7.1 per cent higher over the month and at their highest monthly value since 2018.
For the month of July owner-occupier FHB lending was 33.6 per cent higher over the month the highest it has been since October 2009.
Owner-occupier lending to non-FHB in July was the highest it has been since November 2018 and was 14.3 per cent higher over the month.
Investor lending rose to its highest monthly value since December 2018 and was 4.8 per cent higher over the month.
For the month of July, owner-occupier FHB commitments rose 15.3 per cent.
Owner-occupier lending to non-FHB commitments increased by 17.1 per cent to its highest value since November 2018
Investor commitments rose by 13.3 per cent and was also the highest value increase since November 2018.
Queensland differed from its east coast neighbours with a large lift in non-FHB owner occupiers and moderate risers in FHB and investors.
In July 2019, the value of lending to owner-occupiers FHB commitments rose by 17.2 per cent over the month and where the highest since November 2019.
Owner-occupier non-FHB was 14.5 per cent higher than the previous month and was the highest since November 2018.
Investor commitments increased by 13.1 per cent over the month and were also the highest they have been since November 2018.
In July 2019 lending to owner-occupier FHB fell down by 0.2 per cent over the month and was the lowest since April 2019.
However, values of lending to owner-occupier non-FHB increased by 10.4 per cent.
Investors commitments also increase by 12.1 per cent for the month and was the greatest since October 2018.
Western Australia has experienced an ongoing decline in dwelling values since 2014, however the values of mortgages have increased of late.
In July the value of lending to owner-occupied FHB increased by 17.4 per cent to its highest levels since November 2018.
The value of lending to owner-occupier non-FHB rose by 14.1 per cent to its highest level in two months.
Finally, the value of lending to investors rose to its highest value in two months due to a 14.1 per cent increase over the month.
In July 2019 the value of lending to owner-occupied FHB was down by 14.9 per cent over the month, recording its lowest monthly value since December 2018.
Lending to owner-occupied non-FHB increased by 27.6 per cent to reach its highest value since May 2019.
Investors also took advantage of the Tasmanian market with lending increasing by 26.6 per cent for the month. Although this was lower than the value in May 2019.
Despite the recent slump, recent data indicates a growing demand for properties. Owner-occupier FHB rose by 27.1 per cent in July.
Owner-occupier non-FHB lending rose by 0.5 per cent and was the greatest rise since November 2018.
Investors lending was up by 2.7 per cent for July.
Australian Capital Territory
In the nation’s capital, mortgage demand grew strongly with lending to owner-occupier FHB increased by 76.4 per cent for the month to reach its highest value since November 2018.
Owner-occupier non-FHB rose by 26.3 per cent, however this was slightly lower than the value in May 2019.
Investors interest rose, with an additional 19.5 per cent in mortgage commitments, although the value remained lower than the May 2019 figure.