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Home loan rebound set to be short lived: January home loan market report

Bluestone home loan report

Our January home loan market report is here! Last month, the home loan affordability index showed a sharp increase following the October quarter fall, indicating that home loans are becoming less affordable again. 

“The November quarter index reported a sharp deterioration in national affordability, rising by 1.6% compared to the October result. National home loan affordability has fallen sharply by 14.9% over the 12 months to November 2021.” – Dr. Andrew Wilson


Other home lending highlights

Home loans bounce back – for now

After five months of falling activity, national home lending bounced back over November due to easing Covid restrictions, but it remains to be seen how long this revival will last. 

“Although home lending increased over November, the outlook clearly remains mixed with affordability barriers, the satisfaction of pent-up demand and uncertainty regarding the implications of the current Omicron outbreak, all set to reduce overall home buying activity over coming months.” – Dr. Andrew Wilson.

Owner-occupier established home lending rises sharply

Owner-occupier home loans are up for established homes, along with a rise in loans for new homes and first home buyers. 

“All states reported sharp increases in owner-occupier lending for established homes over November with ACT, VIC and NT the top performers with 44%, 24.7% and 24.1% increases respectively.” – Dr. Andrew Wilson. 

Average loan values rebound

National average loan values were higher for owner-occupiers, first home buyers and new homes over November compared to October and followed the falls recorded over the previous month. 

“The average investor home loan value continues to increase at a faster monthly rate compared to owner-occupiers and first home buyers, although owner-occupiers’ annual monthly growth remains the top performer – for now.” – Dr. Andrew Wilson.

Download the full report here.


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