According to AFG, Australia’s largest mortgage broker, sales for May 2011 are back to within just 1.7% of May 2010 figures.
Property investor activity in the current market has contributed to an 18.8% increase in mortgage sales during the month of May 2011.
“Property investment has remained at consistent levels throughout the ups and downs of the property cycle, but strengthened significantly in May,” said AFG general manager Mark Hewitt.
Investors are reported to have been more active in the market over the last few months, increasing their share of all mortgage sales by 2.6% between February and May.
Victoria and New South Wales had the highest proportion of investment loans with 38.8% of loans in Victoria and 37.9% of those in New South Wales, processed for investors.
May also saw an increase of investment loans in Queensland, up to 36.5% - and this is the highest such figure for well over a year.
As more buyers chose to lock in rates, the proportion of fixed rate home loans rose slightly to 8.4% from 6.4% in April.
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