ABS data released yesterday reveals why property values have been taking off since October as the economic & property upturn continues at record pace.
Here are the highlights!
- New total loan commitments reached a record high as people cash in on record low rates & property values at 2017 levels or earlier in the mining states such as WA & NT that have been stagnant for over a decade.
- Value of new owner occupier loan commitments rose to more than 30% higher than this time last year.
- Value of construction loan commitments rose by 65.6% since July, coinciding with the implementation of the HomeBuilder grant. Commitments for construction are almost double the monthly average & the largest contributor to the rise in owner occupier loans. As we recently posted, Aussies surpassed the US, for the biggest homes in the world, as we build, extend & renovating during the great lifestyle re-evaluation.
- First home buyer loan commitments increased again to more than 30% above any level since 2009. The 2009 peak occurred when the FHOG temporarily tripled as part of the economic stimulus package in response to the GFC.
- Total value of investment loan commitments remain static (but watch this rise from now on as they join the property rebound bandwagon).