The Real Estate Institute of Australia (REIA) said the latest Australian Bureau of Statistic (ABS) lending figures show the value of new housing loan and investment loan commitments rose over May 2022 including new loan commitments to first home buyers. 

REIA President, Mr Hayden Groves said the figures show the value of new owner-occupier housing loan commitments increased to 2.1% contributing 82% of the rise in total lending while investment loan commitments rose 0.9%. 

Mr Groves said that first home buyers remain 6.9% higher than February 2020 levels before the onset of the COVID-19 pandemic. 

“The number of new loan commitments to first home buyers grew by 2.3% in May 2022 but was 31.6% lower compared to the same time last year when first home buyer stimulus packages remained in place.

“These figures show first home buyers keen to lock in mortgages as interest rate hikes loom.” 

Mr Groves said that even though the value of loans has increased, consumer sentiment was a concern as inflation and further interest rates rises continue to rise as shown in listings and sales recorded by CoreLogic.  

“CoreLogic reflects home sales nationally through the June quarter were -15.9% lower than a year ago but are still holding 13.0% above the previous five-year average.

“National advertised stock levels remain -7.4% lower relative to 2021, in Sydney and Melbourne, where housing conditions are the weakest, total advertised supply is now 7-8% above the levels recorded a year ago and well above the five-year average.  

“In Adelaide, where housing conditions remain strong, advertised stock levels are still -16.9% lower than last year and almost -40% below the five-year average. 

“It is not all bad news on the supply front where Hobart has seen advertised stock levels jump 48.4% higher relative to last year and inventory is 20.7% higher in Canberra.”

Mr Groves said the rise in advertised supply across some markets is mostly due to a slowdown in the rate of absorption.  

“Estimated transactions in Sydney throughout the June quarter were -36.7% lower than a year ago while Melbourne is down -18.3%.

“This trend is reflected in today’s ABS lending figures and we expect this to be borne out in future months.”