Home loan applications ticked down in December, following a record high November, new data has revealed.
Spending intentions for home buying pulled back in December, after jumping higher in November, as Aussies upped their spending on travel and entertainment, the latest data from the Commonwealth Bank Household Spending Intentions (HSI) series has shown.
According to CommBank data, home loan applications tickled down in December, although remaining higher year-on-year, as Australians flocked to camper, recreational and utility trailer dealers ahead of the holiday season.
Despite the shrinking numbers, CBA senior economist Belinda Allen is confident property will drive economic growth in 2021.
“We continue to expect the home buying market to be a key source of support for the Australian economy in 2021 – driven largely by the very low level of interest rates,” Ms Allen said.
Last week, figures released by the Australian Bureau of Statistics revealed a record-high total value of new loan commitments for housing in November, with an extraordinary yearly growth of 23.7 per cent, with owner-occupier home loan commitments leading the upward charge with a 31.4 per cent rise compared with November 2019.
The sum of new loan commitments for housing in November stood at $24 billion, recording a seasonally adjusted growth of 5.6 per cent, while that of new owner-occupier home loan commitments increased 5.5 per cent to $18.3 billion.
A surge was also recorded in loan commitments for investor housing, with a 6 per cent monthly increase and 3.9 per cent yearly growth in November.
Interestingly, Victorian owner-occupier home loan commitments rose sharply, up 19.6 per cent in seasonally adjusted terms in November, reflecting a surge in housing market activity as COVID-19 restrictions were eased.