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‘Now’s the time to buy’: Demand for lending bounces back as market recovers

By Ellen Lutton | 9 Sept 2019

Buyers are being urged to make the most of property prices, with September ABS figures showing a strong uptick in new lending.

Data from the Australian Bureau of Statistics released in early September showed total lending to Australian households for dwelling purchases (those excluding refinancing) rose 5.1 per cent over the month of July – the highest month-on-month jump in over five years.

The last time mortgage lending grew by that much was in September 2013, which was also around the time when property prices began a strong upward momentum, said Domain research analyst Eliza Owen.

“As we expected, the finance space is back,” Ms Owen said. “What these lending figures show us is how much the finance space has changed off the back of the re-election of a Coalition government, and successive cash rate cuts.”

 

 

The strong increase in home loans was the strongest leading indicator yet that a recovery was underway, said Maree Kilroy, economist for BIS Oxford Economics.

“The appetite for residential property has increased, which is what we expected,” she said. “We’ve had all these changes that were designed to encourage housing demand, and they have.

“The churn has been initiated, these changes don’t work in isolation, they work together, so that’s why we’re seeing the lending numbers have increased so strongly.”

Real estate agents across the capital cities reported buyers were back in the market literally the day after the federal election result came in.

Miriam Sandkuhler, chief executive and buyers’ advocate at Property Mavens, said property buyers should note that investors and homebuyers were back in the market “in a big way”.

“We are going to see some strong auction results ahead of us. Short supply of good quality and affordable stock could result in a mini-boom if more vendors sit tight and watch the market, rather than list their properties for sale,” she said.

Keiran Whaley, director at Jellis Craig Ivanhoe, said: “From a buyer’s perspective, there is no better time to buy, because prices are still 10 to 15 per cent off their peak.”

“The bounce-back has been amazing and I’d say very similar to what happened after the GFC, in that it [the market] was off one week, and on the next.  If we get the listings coming into the spring selling season, things could definitely pick up substantially.”

Andrew Mackenzie, Estate Sales Manager at Paramount Private Estate Baldivis, said he too was positive about the market with strong sales in the first stage at Paramount.

Mr Mackenzie also said, “Paramount has something to suit all buyers with prices starting at $156,000”.

 

 

 

Paramount is situated at the southern end of Baldivis Road, and rises westward towards the ocean.  From its elevated position on the ocean-side, Paramount is destined to become Baldivis’ premier land development, with stunning views over bushland and to the hills.

It’s easy to imagine living in a beautiful new home that’s surrounded by parks and natural bushland, only a short distance from great schools, shopping centres and all your amenities.

A range of quick and easy transport options are also within easy reach, including trains, buses, freeway and bike path. And if it’s recreation you want, Paramount is a short drive away from fishing, swimming, boating, bushwalking and picnics at some of Western Australia’s most beautiful beaches.

 

BUY NOW WHILE LAND IS STILL AVAILABLE!

Paramount Private Estate Baldivis offers premium lots from 375sqm through to 544sqm, from as little as $156,000!

Come and check out our huge range of block sizes, including sought after larger lots.  Plus, the views at Paramount are terrific too!  The best in Baldivis!!

 

Contact Andrew Mackenzie, our friendly Estate Sales Manager on 0419 904 790 or andrew@spatialproperty.com.au before they’re all sold out!