The slowdown in investor housing loan approvals continues, supporting the Reserve Bank’s belief that the May rate cut won’t spark a surge in housing activity.
That’s despite the rise in 1.6% rise in dwelling prices in May.
Data from the Australian Bureau of Statistics yesterday revealed that new investor home loan approvals fell to a near two year low in April.
The ABS said lenders approved $11.29 billion of new loans to investors in April, seasonally adjusted, 21% under the all time peak of $14.26 billion in April, 2015.
It was the lowest monthly figure since June 2014. It helped send the the total value of loans, including lending to owner buyers, to an 11 month low of $31.99 billion.
April loan approvals were $1.86 billion lower than their peak in August and $855 million lower than the average for the year to March owners trumped that of investors not intending to live in homes themselves.
Investor home loans growth fell 5% month-on-month, having risen 0.8% in April – down from the originally reported 1.5% rise. Loans to owner-occupiers rose 0.1%, having fallen 1.1% in April.
Overall, loans rose 1.7 %in April from March, up from a 0.7% slide in March.
In his post meeting statement, RBA Governor Glenn Stevens expressed no concern over lending or the property sector, saying: "Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments.
"Dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities”.
In other words there could be a big problem ahead for apartments and buyers – both owner occupiers and investors.
