The number of loans approved for the purchase of properties has virtually collapsed as buyers continue to avoid the property market.
According to the Australian Bureau of Statistics, the number of new home loans written in February plunged 5.6 per cent to 45,393 – the lowest number of loans approved in a month since 2001.
Loans for the purchase of new dwellings also declined by 12 per cent, falling to the lowest level since September 2008 while the number of first home buyers as a percentage of total owner occupied housing commitments decreased from 15.2 per cent in January to 14.9 per cent in February – the lowest since June 2004.
“The ongoing deterioration in new home lending supports the Reserve Bank’s decision yesterday to hold the official cash rate steady, and it also highlights the need for execution of the widely-held expectation for an extended pause for interest rates,” HIA economist Matthew King said.
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