Welcome to this month’s edition of the Dot Monthly..
Investor Loans Up In April
The average mortgage size has risen 7% over the year to a record $563,550. This comes as the ABS reports new lending for housing rose 3.7% in April to a record high of $31 billion.
Property investors are now outpacing first-home buyers. The value of new loans for investor housing rose 2.1% to $8.1 billion in April, the highest level since mid-2017. At the same time, new first-home-buyer commitments fell 1.9% to a monthly total of $6.7 billion.
The end of the HomeBuilder scheme in late March again weighed on the value of loans for construction, which fell 11.4% in April to $3.21 billion. Housing Industry Association economist Angela Lillicrap says it’s the first ABS data to show the nation is past the peak in the surge in construction due to HomeBuilder.
BIS Oxford Economics’ Tim Hibbert says while lending for new homes is expected to taper with the end of HomeBuilder, lending for existing properties is positioned for more growth.
Renovation loans rose 26.5% to a 17-year high of $403 million.
97% Of Regions Are Growing
handful of neighbourhoods have missed Australia’s soaring house prices, with just 11 areas across the country recording price falls in recent months – most of them remote rural areas.
Australia’s median property value jumped 7% over the past three months, the latest CoreLogic figures show, with the biggest gains seen in Sydney (9.3%), Darwin (7.9%) and Hobart (7.7%).
But price growth wasn’t limited to the cities, with an increase in property values recorded across 97% of the regions analysed by CoreLogic. Only 11 locations saw prices dip over the past three months – some of which recorded only a marginal fall after previous price rises.
CoreLogic’s Eliza Owen says it’s rare to see so many markets in a synchronised upswing. “The few markets that have seen a fall in dwelling values in the three months to May are in more remote locations across regional Australia,” she says. They include the West Pilbara region in WA and the Darling Downs and Maranoa region in Queensland.
Property Listings Continue to Drop
Property listings nationwide dropped 6.3% in May compared to April and old stock is being cleared nationwide as the number of buyers outstrips sellers.
Figures released this week by SQM Research indicate the largest monthly falls in listings were in Canberra, Melbourne, Brisbane, Adelaide and throughout regional Australia, as stock levels trend downwards. In annual terms, listings fell 19% across the nation, which SQM Research managing director Louis Christopher says is putting upward pressure on prices.
In a sign that older stock is clearing, listings over 180 days dropped 9.2% in May and are down 44% over the year, with falls recorded in all capital cities – and in particular in the smaller capital cities.
“Property listings fell in May due to strong market conditions,” says Christopher. “We have also seen a big fall in old listings, indicating old stock is getting moved. This suggests strong absorption rates, so new listings are not completely offsetting the falls in old listings.”
What has Dot been up to for the month?
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