Signs point positive for investor lending
New data has suggested positive signs for investor lending going forward.
The value of lending to housing investors rose 2.2 per cent over November, marking its 12-month high, according to Master Builders chief economist Shane Garrett.
“The positive result for investor lending is consistent with other indicators, which are all telling us that the housing market has entered the early stages of a recovery following a difficult couple of years,” he said.
Renewed enthusiasm among investors for Australian housing “is the result of a return to solid house price growth in key markets as well as the more attractive financing conditions flowing from three RBA interest rate cuts last year”, Mr Garrett noted.
“In contrast, the number of loans to first home buyers declined for the second consecutive month during November,” he said.
“This should not be a cause for concern; it is likely that many FHBs have deliberately postponed their entry into the market until after 1 January, when the new First Home Loan Deposit Scheme opened for business.
“Accordingly, we expect that the housing market recovery will gain further momentum, thanks to the flood of first home buyers entering the market under the new scheme.”
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