Settlements and refinances continue to fall: PEXA

According to Property Exchange Australia’s latest Mortgage Insights Report for November 2022, declines in new loan settlements and refinances were observed, however, some states have shown some rises in both areas.

Total sale settlements with a new loan in October 2022 were up 1.7 per cent in NSW when compared to the September 2022 figures but were down 22.3 per cent when compared to the same period last year.

Refinances for NSW also declined by 6.5 per cent, however, were slightly higher (0.7 per cent) year-on-year.

Queensland also showed declines in both areas of total sale settlements and refinance settlements, with a decline of 5.2 per cent for sale settlements month-on-month with a fall of 21.6 per cent yoy, while refinances fell 6.2 per cent in September but rose 13.8 per cent year-on-year.

In Victoria, new loan settlements also fell by 0.3 in October, and 6.6 per cent year-on-year, however, refinance settlements were up 2.4 per cent on September 2022 and were 10.9 higher year-on-year.

New loan settlements for Western Australia fell by 3.5 per cent month-on-month and 7.2 per cent on October 2021. Refinances held steady for the state and were 30.7 higher than last year.

Australia’s property market run is over, PEXA says

The recent settlement decline has proved that the residential property market record run in Australia has drawn to a close, according to PEXA.

NSW led the decline in Australia’s residential sales settlements in both property sales volume and aggregate value, as shown in PEXA’s Property Insights Report for the September quarter.

The report noted a marked decline quarter-on-quarter and it found that Australia’s most populated state recorded 41,357 residential sales settlements worth an aggregate value of $47.7 billion.

These figures marked a decline of 13 per cent in sales and a 16.8 per cent decline in value quarter-on-quarter.

PEXA explained that these figures indicate that NSW was experiencing “…a faster market slowdown than any other region”.

Queensland’s property market topped the nation for total volume for the quarter, recording 46,621 residential sale settlements, recording a drop of 10.2 per cent quarter-on-quarter and an aggregate value of $32.2 billion (a decline of 11.8 per cent quarter-on-quarter).

Victoria saw an 11.8 per cent drop on sales settlements during the same period (44,255) and a drop in value of 10.2 per cent at $37.8 billion.

[RELATED: Home settlements pass double-digit decline: PEXA]