Best Month for Home Loans in 40 Months

The latest housing finance data from the Australian Bureau of Statistics has shown March had the highest monthly uptake of home loans since November 2009, says leading mortgage broker Loan Market.

Loan Market spokesperson Paul Smith said that the 48,071 loans taken out were the highest total in 40 months and that each state in the country was showing month-on-month growth for the first time in 2013.

“Nationally, the number of loans taken out in March 2013 was up five per cent from February and New South Wales showed the highest growth at eight per cent,” he said.

“These statistics are encouraging in that each state-based housing market is heading in the right direction,” he said.

“Lower interest rates and the returning confidence to the property market are two of the biggest factors in these positive results,” he said.

Mr Smith said that the latest rate cut in May should give a big boost to what was still a fragile sector.

“To have the strongest month of housing finance in 40 months is definitely a sign that the market is recovering from the slowdowns seen in the past year. With interest rates being at historic lows we’re likely to see more home owners and buyers continue strong activity,” he said.

Mr Smith said that the Northern Territory was the only area of the country showing negative growth, writing 4 fewer loans than in March than February.

ABS Housing Finance Results

                    MoM YoY

NSW            8%    6%

VIC               5%    10%

QLD             2%    2%

SA                5%    1%

WA               4%    9%

TAS              4%    15%

NT                -2%   -18%

ACT              4%    15%

 AUS              5%    6%