Home loan demand remains strong, with new data showing a 1.2% jump in the number of dwelling commitments approved throughout February.
According to the February Housing Finance Data from the Australian Bureau of Statistics, 53,614 home loans were approved throughout the month – up from 53,000 in January.
Mortgage Choice spokesperson Jessica Darnbrough said the small spike in home loan approvals could be attributed to the sudden increase in demand for new dwellings.
“Data from the Australian Bureau of statistics found more than 2,600 home loans were approved for the purchase of new dwellings in February – 5.4% higher than the month prior,” she said.
“Similarly, the data found there was also a jump in the number of home loans approved for the purchase of established dwellings as well as the construction of dwellings.”
But while the number of home loans approved throughout the month of February was up, Ms Darnbrough said the value of home loans written dropped.
“Just over $30 billion in home loans were approved throughout February – down 1.0% on the month prior,” she said.
Ms Darnbrough said she wasn’t surprised to see a slight fall in the value of home loans written, as recent research conducted by CoreLogic shows property value growth plateaued throughout the course of February.
“The CoreLogic RP Data February Home Value Index found dwelling values across Australia’s combined capital cities rose by just 0.3% throughout the month – most of which was driven by Sydney,” she said.
“Sydney continues to go from strength to strength, with property values climbing 13.7% in the 12 months to March. In fact, Sydney is the only capital city to record double digit dwelling value growth over the last 12 months – significantly higher than its nearest competitor Melbourne which has recorded property value growth of 7.4% over the last 12 months.”