Record $30.2 Billion in home loans in March as property prices continue to increase through Apri

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Record $30.2 Billion in home loans in March as property prices continue to increase through April and beyond.

The latest Australian Bureau of Statistics (ABS) report shows that new home loans reached $30.2 Billion in March 2021, with investor lending hitting 12.8% over the month to $7.8 billion.

Loans for housing construction fell 14.5%, as the $2.5 Billion Home-Builder scheme ended, and the ABS also shows owner-occupiers made $22.4 Billion of new loan commitments over the March period, which is an increase of 3.3% from February, and a 55.6% increase from March 2020.

The continued surge in housing price of 2.8% in March is the highest monthly increase recorded in the last 32 years.

Owner-occupier lending benefitted from the Federal Government’s $2.5 Billion Home-Builder scheme, which provided $25,000 grants for eligible new home builds until December 31, and $15,000 grants until April 14.

Katherine Keenan, the ABS head of Finance and Wealth, said “Investor lending has seen a sustained period of growth since the 20 year low seen in May 2020, and the rise in March is the largest recorded since July 2003 and was driven by increased loan commitments to investors for existing dwellings.”

Home prices continued to grow in April rising 1.8% and there is no end in sight for the near future.