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The ABS released the Lending to Households and Businesses data for January 2022 today. The data provides statistics on housing finance commitments.
“First home buyers remain more active in the market now than before the pandemic, despite the reduction in the value of lending in recent months,” added Mr Devitt.
“First home buyers are very sensitive to changes in market confidence, tightening of finance and declining affordability.
“Owner occupiers (excluding first home buyers) and investors, on the other hand, both reached new record highs in January in terms of the value of loans. The activity of owner occupiers has kept investors to only a third of the market, compared to over 40 per cent back in 2015.
“Lending for renovations has also maintained record high levels. The value of loans in the last eight month were double that of the equivalent period a year earlier,” concluded Mr Devitt.
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.
Tasmania’s housing market slowed in November, with building approvals falling sharply compared to October. Approvals for new homes dropped almost 20 per cent, and even after seasonal adjustment, the decline was 5.8 per cent.
Australia’s home building industry is expected to strengthen through 2026, supported by gradually improving building approvals and a recovery in demand, but the pace of growth will ultimately depend on how quickly interest rates can fall further, according to the Housing Industry Association.
The Housing Industry Association (HIA) has today expressed concern that the Tasmanian Government appears to have walked away from a key election commitment to accelerate the finalisation of Regional Land Use Strategies.