Property Investors have reached record home loan values, while First home buyers reach record lows in certain areas such as Victoria, where the value of commitments dropped to 11.7%, the lowest since 1991. The previous months’ recording was the lowest at 12.2%.
Home loan approvals have been steady as it posted an annual growth rate of 13.3%. For this month alone, the value of loans for property investors rose by 8.2% to $10.3 billion – the highest recorded level ever.
The Reserve Bank of Australia has been keeping a close eye on the situation. Further implementing rate cuts can tip the scale drastically and as such, the cash rate remained unchanged. Incentives for First home buyers should also be reviewed so as to entice people to purchase property. Whether the interest rates increase or drop further (which will discourage investors), the first home buyers in the market will definitely help in keeping the balance in the property sector.
Read more about this on the Age website.