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The ABS released the Lending to Households and Businesses data for February 2022 today. The data provides statistics on housing finance commitments.
“This leaves the number of loans for new homes up by 11.4 per cent on pre-COVID levels,” added Mr Devitt.
“The value of lending fell by 3.7% in February but remains well above the value of lending in previous years.
“The pandemic trend of homebuyers seeking more space and amenity continues to be reflected in the data almost a year after the end of the HomeBuilder grant.
“Owner-occupiers are dominating the market, with the value of loans to this group up by 55.7 per cent on pre-COVID levels.
“First home buyers too, despite pulling back from the market after the HomeBuilder grant closed, accounted for $15.9 billion worth of the market, up by 29.9 per cent on pre-COVID levels.
“Loans to investors, despite being around record highs, only account for around a third of the market.
“Lending for renovations has also maintained record high levels. The value of loans in the last three months were 141.8 per cent above pre-COVID levels.
“Home ownership matters – it is the basis of a stable household and a stable economy,” concluded Mr Devitt.
The Housing Industry Association (HIA) has been at the forefront of advocacy, fighting hard for our members and industry. We are pleased to highlight a few important wins achieved over the past week.
The following comments can be HIA’s Chief Economist, Tim Reardon in relation to the APRA announcement to limit lending.
“The Housing Industry Association (HIA) is pleased to see progress on the long-awaited and much debated EPBC Act reforms, though the final details on the new laws and how they will be implemented now become critically important,” HIA Managing Director Jocelyn Martin said today.
The Victorian Government has just announced changes to the method of calculating the cost of building work for building permit applications. The changes aim to ensure that the building permit levy is only charged for actual building work.