Home lending holds steady
Home lending has held steady at high levels in September.
New figures from the Australian Bureau of Statistics show a 0.5% rise for owner occupied lending in September, though the figures were 7.8% lower than the same period last year.
HIA economist Geordan Murray said the figures indicated moderating activity for the home building market, though lending for new home building remained at high levels.
“The level of lending to households buying new homes was similarly steady during the month. The number of construction loans fell by 0.3% in September, and was down by 3.3% down on the level recorded year ago. Lending activity in this part of the market reconciles quite well with indicators tracking the new home building activity. It is likely that the new home building cycle peaked in 2016 and that we’ll see activity moderate as we progress through 2017,” Murray said.
Murray said investor lending had also seen a modest uplift over recent months.
“We can expect some further uplift in this part of the market over the year ahead as an increasing number of the new homes currently under construction reach completion and off-the-plan purchases by investors reach settlement,” Murray said.
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