Demand for home loans remained relatively flat for the second consecutive month, new data from the Australian Bureau of Statistics has revealed.
According to the September housing finance data, while the total value of all dwelling finance commitments climbed over the course of the month, the number of housing finance commitments fell 0.7 per cent.
The figures show that 51,465 loans were approved in seasonally adjusted terms over the month of September – down from the 51,818 loans written the month before.
The number of loans approved for the purchase of established dwellings fell 1.3 per cent over the month of September, while there was no change in the number of loans approved for the purchase of new dwellings.
While the number of loans approved for the purchase of established dwellings fell, the number of loans approved for the construction of new dwellings increased by a considerable 3.1 per cent.
Speaking about the results, Mortgage Choice spokesperson Jessica Darnbrough said the fact that home loan demand was relatively flat in September was unsurprising as recent research conducted by RP Data showed home values eased their way into spring, with the combined capital cities recording just 0.1 per cent growth over the month.
“Dwelling values across Australia's capital cities were virtually flat over the month of September,” Ms Darnbrough said.
“Just Sydney, Brisbane and Adelaide were able to record an increase in dwelling values over the course of the month, with prices climbing by 0.8 per cent, 0.7 per cent and 0.9 per cent respectively across the three capital cities,” she said.
Ms Darnbrough expects the housing market to remain strong, buoyed by growth in investor demand and the construction of new dwellings.
“The fact that the number of loans approved for the construction of new dwellings increased significantly over the month of September is incredibly positive for the construction industry and the Australian economy as a whole,” she said.
“When the construction industry does well, so too does the Australian economy, so it is nice to see a strong increase in the number of loans being approved for dwelling construction.”