Borrowers Take A Breath

It’s not just investors taking a breath in the property market at the moment, with new Australian Bureau of Statistics data showing lending activity fell across the board in the past quarter.

The number of new loans fell 6.2% in the March quarter, with owner-occupier loans down by 6.9% and investor loans down 5.3%.

ABS head of finance statistics, Dr Mish Tan, says despite the quarterly fall, lending activity  remains at high levels over the past 12 months.

“Total new home loans (are) 8.6% higher than a year ago,” she says.

The value of new loans is also up across the past 12 months, by 18.5%.

“The average home loan size is now 9% per cent higher than a year ago at $724,415. This is consistent with rising property prices, with the strongest growth in Western Australia, Queensland and South Australia,” Tan says.

The data shows that First Home Buyer lending also eased during the quarter with 1,519 loans compared to 1,945 in the previous quarter.