The latest housing finance data shows mortgage demand crept slightly higher in July.
According to the latest Housing Finance data from the Australian Bureau of Statistics, 52,251 loans were approved in seasonally adjusted terms over the month of July – up 0.3 per cent from the 52,074 loans written last month.
While the number of loans approved for the construction of new dwellings slid 1.3 per cent over the same period, the number of loans approved for the purchase of new dwellings and established dwellings both grew, climbing 0.5 and 0.6 per cent respectively.
The total value of all loans written increased 2.7 per cent over the month.
Mortgage Choice spokesperson Jessica Darnbrough said it wasn’t surprising to see a significant jump in the value of all loans written, as recent research from RP Data shows property prices climbed 1.6 per cent across the combined capital cities in July.
“According to the research conducted by RP Data, property values climbed in Sydney, Melbourne, Darwin and Canberra throughout the month of July,” Ms Darnbrough said.
“Melbourne led the pack, with the capital city recording a 3.7 per cent lift in property values over the month, closely followed by Darwin, which saw a 2.8 per cent increase in property values over the month,” she said.
Ms Darnbrough said capital city dwelling values have trended higher since June 2012, with the combined capital cities recording 17.4 per cent growth in property values over this time.
“Since June 2012, Sydney has really proven itself to be a standout performer, with values moving almost 25 per cent higher,” she said.
“Darwin and Melbourne have also enjoyed incredible growth in property values, with the capital cities recording growth of 20.4 per cent and 18.5 per cent respectively.”
But while some capital cities continue to perform better than others in terms of value growth, Ms Darnbrough said broadly speaking, the Australian property market is performing well at the moment.
“The property market is proving attractive to buyers at present, with home loan approvals now hovering around all time highs,” she said.
“Moving forward, with interest rates still at all-time lows, the property market should remain popular with Australians, which should result in strong demand for home loans.”