Australian Property Monitors, a part of Fairfax, has just released some encouraging home loans data for April.
This article analyses that data and examines what it means for the property market.
Double the number of home loans were approved in April than the market expected, with Queensland showing signs of recovery after recent flooding.
The number of home loans approved in the month rose 4.8%, to a seasonally adjusted 47,347, official data shows.
Economists' forecasts had centred on a 2.3% rise in housing finance commitments for the month.
The Australian Bureau of Statistics (ABS) said total housing finance by value rose 3.8% in April, seasonally adjusted, to $19.848 billion.
JP Morgan economist Ben Jarman said the data was much stronger than he had expected, with home loan approvals coming back in Queensland after the severe weather-related disruptions earlier in the year.
"Generally, it seems pretty strong across the board with Victoria, NSW and Western Australia all posting pretty solid gains," he said.
He expects the Reserve Bank of Australia (RBA) to start raising the cash rate again, if the data in the remainder of the year shows signs of rejuvenation in the housing sector.
The RBA has kept the cash rate unchanged at 4.75% since November 2010.
This continuing trend is good news for the housing market. Interest rates have now remained stable for seven months, facilitating an orderly recovery in the Sydney housing market as it re-balances following the strong price rises of last year.
Housing market fundamentals continue to strengthen, according to the Bureau of Statistics, with Australian seasonally adjusted owner-occupied housing finance commitments rising by 4.7% in April.
If you are thinking of purchasing a property and need help with a home loan, speak to one of the mortgage brokers at Intellichoice today.
Posts
