Housing lending surges to record high off Victorian rebound post lockdown

First home buyer commitments hit the highest level since the Rudd stimulus of 2009 in November 2020

Housing lending surges to record high off Victorian rebound post lockdown
Housing lending surges to record high off Victorian rebound post lockdown

EXPERT INSIGHT

First homebuyers commitments hit the highest level since the Rudd stimulus of 2009 in November 2020, as Victoria rebounded strongly post-lockdown.

Housing lending surges to record high off Victorian rebound post lockdown

Owner-occupier lending is exceptionally strong in New South Wales, Queensland, and Western Australia.

Housing lending surges to record high off Victorian rebound post lockdown

And, as expected, investment lending is now increasing, up by 6 per cent in November to be higher than a year ago, also driven by strength in New South Wales and Queensland. 

Housing lending surges to record high off Victorian rebound post lockdown

RBA research showed that a permanent 100 basis point decline in the cash rate would likely result in a 30 per cent increase in real housing prices after about three years, which looks eminently possible from these figures, with supply-constrained markets with a concentration of investors seeing the largest effect.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

Tags: 
Victorian Lockdown First Home Buyers Home Lending

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