Australians are borrowing more money for property than ever before, new data released by the Australian Bureau of Statistics showed today.The total value of new loan commitments for housing reached a record high in November 2020, rising 5.6 per cent to $24 billion.The value of new owner occupier home loan commitments – not investors but people buying to live – rose 5.5 per cent to $18.3 billion.
That’s almost a third higher than it was in November 2019, prior to the COVID-19 pandemic.ABS head of finance and wealth, Amanda Seneviratne, said most of the money was coming in for homes that already existed.”Loan commitments for existing dwellings rose 5.9 per cent and were the largest contributor to the rise in November’s owner occupier housing loan commitments,” Ms Seneviratne said.
“The value of construction loan commitments grew 5.6 per cent in November, rising 75 per cent since July. This follows the implementation in June of the Government’s HomeBuilder grant in response to COVID-19.”Other federal and state government incentives and ongoing low interest rates also contributed to the continuing growth in new housing loan commitments.”
The number of loan commitments for first home buyers rose 3.1 per cent to 13,905, marking a stratospheric rise of 42.5 per cent since the start of the year.A huge spike in home loans marks a return to form for the Australian property market, which was remarkably resilient throughout the worst of the pandemic.In fact, it appeared that the lack of availability to view and purchase homes merely paused ordinary trade until vendors, agents and buyers could begin working as normal.
“The number of residential property sales plummeted by 40 per cent through March and April but finished the year with almost 8 per cent more sales relative to a year ago as buyer numbers surged through the second half of the year,” Corelogic’s research director Tim Lawless said.”Despite the volatility, housing values showed remarkable resilience, falling by only 2.1 per cent before rebounding with strength throughout the final quarter of 2020.”You can get up-to-date information from the Federal Government’s Coronavirus Australia app, available on theApp Store,Google Playand theGovernment’s WhatsApp channel.Beyond Blue’s Coronavirus Mental Wellbeing Support Service is a 24/7 service free of charge to all Australians.Visit the site here or call 1800512348. For coronavirus breaking news alerts and livestreams straight to your smartphone sign up to the 9News appand set notifications to on at theApp Storeor Google Play.The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.