New home loans at a record rate, as first home buyers pile into the property market

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New home loans at a record rate, as first home buyers pile into the property market

Republished from Business Insider

  • New home lending grew at its fastest clip in 11 years in July, while owner-occupier finance hit a new record.

  • It comes as first home buyers jump into the market, largely replacing property investors.

  • While the Commonwealth Bank upgraded its price forecasts on Wednesday, there are a handful of factors that could see the market weaken further over the next 12 months.

  • Visit Business Insider Australia’s homepage for more stories.

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COVID-19 and Credit - will my loan application be approved?

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COVID-19 and Credit - will my loan application be approved?

As the economic impacts of COVID-19 bite harder and longer, we are seeing most lenders exhibit far more caution when assessing new loan applications. Well aware of the impact on certain industries, they are at a minimum requesting a statement of financial impact from prospective borrowers, and in the case of self-employed borrowers, increased levels of qualifying documentation.

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Market Essentials - September 2020

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Market Essentials - September 2020

While the property market is not immune to the Covid-19 economic fallout, sellers are returning. According to Core Logic, most plan on selling for “lifestyle reasons rather than economic hardship”. It’s expected that buyer confidence will increase over the coming months and that well-located homes and investment properties will attract healthy competition at auction.

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Market Essentials - August 2020

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Market Essentials - August 2020

This month the Federal Government announced the extension of the JobKeeper program for a further six months, along with the JobSeeker supplement also being extended.

Combined with more targeted extensions to the ‘mortgage holiday’ on repayments, many Australians will be breathing a sigh of relief as they’re given additional time to manage their financial affairs through the pandemic.

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Market Essentials - July 2020

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Market Essentials - July 2020

Downwards pressure on home values has remained mild to-date, with capital city dwelling values falling a cumulative 1.3% over the past two months. A variety of factors helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus. Additionally, low-interest rates and forbearance policies from lenders have helped to keep urgent sales off the market, providing further insulation to housing values.

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Market Essentials - June 2020

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Market Essentials - June 2020

Economists have forecast a drop of between 11 and 32% in house prices over the next three years according to Commonwealth Bank, driven by the end of Government stimulus measures in September. For now, reduced stock levels, willing buyers and sellers transacting on property, and a lower than expected influx of distressed property sales are all preserving property values.

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