Home loans have dropped for the first time this year. Is this a reason to worry?
The Bureau of Statistics data shows that home loans have dropped by 3.9% in August. This is greatly affected by the decrease in first home buyer loans at 13.7%. Even with these changes, there is still optimism among home investors as the value of loans to property remained unchanged.
These changes are attributed as a “post election” effect, as analysts forecast a surge of home loans with the record low-interest rate. The decrease of first home buyers also correlates with rising house prices and housing shortages.
To address this shortage, home buyer and investor loans to build new homes have increased by 2.2%, an indication that these changes in loans are not a cause for concern. As first home buyers have decreased, the value of loans and new home construction has kept the property sector in balance.
Read more on the Yahoo Australia Finance website.