First home buyer baton change to property investors continues

The value of owner-occupier first home buyer loans dropped by $532 million, according to latest data from the ABS. There were $32.05 billion of new home loan commitments in June, down 1.6 per cent month-on-month, the biggest monthly drop since May 2020, according to seasonally adjusted data from the ABS. But the value of owner-occupier first home buyer loans was down 7.8 per cent month-on-month in seasonally adjusted terms. The value of investor loans rose 0.7 per cent month-on-month to $9.19 billion in June, the highest level in more than 6 years. RateCity.com.au research director, Sally Tindall suggested the growth in home lending "might finally be losing some steam." And Ms Tindall advised the impact of the latest wave of lockdowns would not be seen until the release of the August ABS data, as new home loans typically take six weeks to settle. “It will be at least a couple of months before we see what impact the latest lockdowns have on the home lending market, however, there’s likely to be more twists and turns ahead. “Would-be buyers who have taken a pay cut during this lockdown could be forced to put their plans on ice for now, while those who’ve kept their jobs and are saving more money working from home, might now be willing to pay top dollar to get into a bigger property,” she said.