The Real Estate Institute of Australia (REIA) President, Mr Hayden Groves said the latest lending figures released by the Australian Bureau of Statistics (ABS) show the total value of new loan commitments for housing fell 3.4 per cent to $27.4 billion in August 2022 (seasonally adjusted), after a fall of 8.5 per cent in July.

“While the value of new loan commitments fell, the number of first home buyers rose 10.4 per cent to 9,258, the highest since August, 2020 with the highest growth recorded in Victoria (11.9 per cent), Queensland (14.3 per cent) and Western Australia (13.9 per cent).

“Government incentives are largely responsible for the rise. First home buyers are being aided by a more buyer friendly market as well as capitalising on programs like the Australian Government Home Guarantee Scheme.”

Mr Groves said the figures show that while the value of new owner occupier loan commitments fell 2.7 per cent in August 2022, the value of new investor loan commitments fell 4.8 per cent.

Mr Groves said that falls in new loan commitments coincide with CoreLogic’s latest Hedonic Home Value Index released 3rd October which shows national housing values recorded a -1.4 per cent decline in September which is less than the -1.6 recorded in August, suggesting the market is starting to show signs of stabilising.

“As the market continues to adjust to rising inflation and interest rates, buyers are still transacting as listing numbers remain constrained,” he said.

Mr Groves added that the latest ABS figures on building approvals show positive signs this sector is improving with the total number of dwellings approved rising 28.1 per cent in seasonally adjusted terms in August, following an 18.2 per cent decrease in July.