Home loan data overstating investors in the market: HIA

Home loan data overstating investors in the market: HIA
Home loan data overstating investors in the market: HIA

The Housing Industry Association’s (HIA) latest Portrait of Australian Home Prices notes the number of investors in the market is being overstated by the reliance on home loan data.

Pointing to the Reserve Bank’s Financial Stability Review comments regarding the housing and mortgage market compositions “becoming unbalanced”, the HIA notes that the home loan breakdown points to 52.9% of owner occupiers and 47.1% of investors in the year to July 2014.

However, they say that this may not be painting an accurate picture of the numbers of owner occupier purchases.

“It is important to stress that this breakdown does not account for home purchases made without recourse to lenders,” the report notes.

They also explain that some investors purchasing with cash, and home purchases by those trading down and using their funds are missed out by the home loan radar.

“Consequently, it can be argued that a reliance on home loan data overestimates the proportion of home purchases conducted by investors.”

{mijopolls 50}

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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Hia Data

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