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The ABS released the Lending to Households and Businesses data for October 2021 today. The publication presents statistics on housing finance commitments including for the purchase or construction of new dwellings.
“Despite this near record level of investor activity, they accounted for a relatively modest 33 per cent of the total lending in October. This is well below their peak of activity in the market in 2015 when they reached 46 per cent of the value of lending,” added Mr Devitt.
“The continued strength in the owner-occupier market means that investor activity does not warrant a return to punitive restrictions on investors.
“Lending to first home buyers also remains elevated. The number of loans issued to first home buyers in October was 32.9 percent higher than the average of the past decade. Despite this strong involvement of first home buyers, they are continuing to decline as a share of the market, as the impact of HomeBuilder erodes.
“The total value of lending for housing in October 2021, remains higher than any month pre-HomeBuilder. In the three months to October, the value of lending for housing was 38.1 per cent higher than at the same time in the previous year.
“This ongoing loan issuance continues to confirm that detached home building will remain elevated throughout 2022.
“The boom in renovations also looks set to continue with lending for renovations in the three months to October higher by 108.0 per cent compared to the same quarter in the previous year,” concluded Mr Devitt.
Today HIA launched our 2025 Federal Election campaign that calls on all political parties to commit to making housing a national priority and deliver a comprehensive housing plan in support of our industry.
The Housing Industry Association (HIA) has welcomed today's announcement by the WA Labor Party to extend the Group Training Organisation (GTO) Wage Subsidy program, providing more opportunities for Western Australians to embark on apprenticeships should it be successful at the next election.
“The RBA cut its benchmark cash rate today from 4.35 per cent to 4.1 per cent, the first cut since it first started its hiking cycle in May 2022,” stated HIA Chief Economist, Tim Reardon.