ABS data on new housing credit shows a rise in the value of home loan commitments, driven by owner-occupier lending.
Since bottoming out in May, the value of new owner-occupier home loan commitments is 17.3 per cent higher, according to Corelogic. The rise in value of owner-occupier housing finance over the September quarter, up 12.1 per cent, was the fastest quarter-on-quarter rise since 2015.
While lending to property investors has been subdued, the value of investment loan commitments was up 6 per cent over the September quarter.
Investors are currently tracking at 24.8 per cent of the value of new mortgage commitments, Corelogic’s head of research Tim Lawless says investors now comprise the lowest portion of housing loan commitments since the ABS records began in 2003.
“In contrast, shortly after the first round of macro-prudential rules were introduced in December 2014, investors comprised 43 per cent of national mortgage demand,” Lawless said.
The data shows mortgage activity is finally showing to pick up across Western Australia, with the value of owner-occupier lending up 15.8 per cent over the September quarter, and the value of investor loans up 24.1 per cent.
In New South Wales the value of owner-occupier loan commitments was up 12.3 per cent over the period, compared with a 3.3 per cent rise in investment.
“Although investment credit growth is slower, NSW has the largest concentration of investment activity across the states, with investors comprising 30.5 per cent of mortgage demand based on value,” Lawless said.
The value of owner-occupier home loan commitments was 11.3 per cent higher over the September quarter in Victoria, compared with a 10.6 per cent lift in lending to investors.
Victoria is home to the second largest concentration of investors, with 25.2 per cent of mortgage demand in September.
The value of investor loans in Queensland increased 12.5 per cent over the September quarter, compared with an 8.4 per cent lift in owner occupier lending.
Corelogic’s home value index shows national dwelling values bottomed out in June this year, the same month that housing credit started to rise.
“The improved credit flows have been supported by APRA’s decision to relax borrower serviceability rules, as well as the lowest mortgage rates since at least the 1950’s,” Lawless said.