Home Loan Approvals Jump In May : ABS
The latest home loans data released by the Australian Bureau of Statistics (ABS) has shown a continued recovery in the home finance markets, with May 2013 posting the most home loan approvals in 43 months.
Loan Market director Mark De Martino said that the 49,636 home loan approvals in May was a ten per cent increase from May 2012 and likely a result of lower interest rates and strong buying activity from property investors.
“The lower interest rate environment of 2013 has been particularly beneficial for consumers looking to refinance or invest in property. The rate cuts from the RBA and the subsequent drops by lenders have helped bring momentum back into the market,” Mr De Martino said.
Mr De Martino said that first home buyer activity showed a small surge in May with a 17 per cent increase in approvals from April 2013 and the highest total since Oct 2012 at 8,146.
“First home buyer activity only represented 15 per cent of the home finance market in May, but the numbers are heading in the right direction and lower interest rates are helping encourage many first time buyers,” he said.
Mr De Martino said that Queensland was showing particularly strong home loan activity with its highest total in 40 months and Western Australia was a standout performer with an Australian best, 20 per cent improvement from the same time period last year.
“Our mining and resources states are continuing to show growth in the face of a slowdown in the export industry. It’s important that these local economies are still supported while the drivers in the economy shift.”
Mr De Martino said the Northern Territory showed nine per cent growth by approving 30 more loans in May 2013 then May 2012.
ABS Housing Finance Results
May 13 vs May 12
NSW 12% *best result since Oct 2009
QLD 11% *best result since Feb 2010
SA 12% *best result since Dec 2009
WA 20% *best result since Nov 2007
AUS 10% *best result since Nov 2009