Home loan approvals in September 2013 were the highest since October 2009 according to data released today by the Australian Bureau of Statistics (ABS).
Loan Market director Mark De Martino said that the first quarter of the financial year was off to a very hot start with 12 per cent national growth from the previous year and 13 per cent year-on-year growth for September. “Low interest rates and a recovering property market are helping boost activity in the home finance space. Nearly every state is showing double digit growth for the first quarter,” Mr De Martino said.
The 51,938 home finance approvals in September were a rebound from the August figures which saw the first month-on-month drop in approvals in 45 months. Mr De Martino said that with auction clearance rates booming this spring, the upward trend would continue over the next several months.
“Pre-approvals are certainly aiding these numbers as buyers are looking for a leg up on the competition at auctions. Pre-approvals are arming potential buyers with the knowledge and confidence to bid within their limits,” he said. Mr De Martino said First Home Buyers were struggling to enter the market but as the prospective pool of buyers grows, it’s only a matter of time before first home buyers return.
“First home buyers are competing with cashed-up investors and upgraders who have significant equity in their property. Building a sizable deposit and understanding their borrowing power with pre approval will give them the best chance to compete in this market” he said.