Value of new loan commitments for housing has rebounded, according to Adrian Kelly, REIA president.
The Australian Bureau of Statistics has released the June 2020 Lending to Households and Business figures and according to the Real Estate Institute of Australia, the value of new loan commitments has made up ground, after its historic fall in May.
“The value of new loan commitments for owner occupier housing rose 5.5 per cent in June and 8.7 per cent for the year with the majority of the rise in Queensland and New South Wales, while Victoria has declined,” said Adrian Kelly, President of the Real Estate Institute of Australia.
At a Glance:
“The rise in housing loan commitments in June reflects the easing of COVID-19 restrictions in May on auctions and open houses, but despite the recovery in lending activity the value of housing loan commitments in June was down over 10 per cent compared to March after large falls in April and May.
“The value of new loan commitments for investor housing rose by 8.1 per cent following the previous month’s fall of 15.6 per cent.
"This is, however, a fall of 6.1 per cent for the year."
Mr Kelly said the June increase can be attributed largely to New South Wales which outpaced all other states.
“The number of owner occupier first home buyer loan commitments increased by 6.2 per cent in seasonally adjusted terms with all states and territories apart from Victoria and ACT showing increases," said Mr Kelly.
“The recovery in lending is not unexpected with restrictions on movements easing throughout the month.
"Whilst the roller coaster in lending will continue, the low levels of supply will hold the market up,” concluded Mr Kelly.
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