Latest ABS data reveals a spike in home loan lending

Australia’s real estate market remains resilient overall to the ongoing effects of Covid-19, with new data from the Australian Bureau of Statistics (ABS) showing the value and number of home loan lending reaching record highs in August.

According to the latest ABS Lending Indicators report, the value of new home loan lending has increased 12.6% (seasonally adjusted) in August. These new values mark the largest month-on-month rise since the report’s record began in 2002.

new home loan lending graph

ABS Head of Finance and Wealth, Amanda Senevirante said “August’s 12.6% increase in the value of home loan commitments is the largest month-on-month rise in the history of the series”

According to the same report, the number of owner occupier first home buyer loan commitments also rose 17.7%, reaching the highest level since October 2009.

home loan lending commitment graph

The spike in new home loan lending approvals across the board reflects pent-up demand from following the low commitment months of March, April and May as a result of the Covid-19 pandemic. This quick bounce back in new home loan approvals provides valuable insight into consumer confidence in the real-estate market, especially as the uncertainty and impact of Covid-19 begins to dissipate.


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