Home loan activity continued to rise over January following the recovery surge in post-lockdown activity recorded over the final months of 2021. 
Clearly Covid restrictions and uncertainties have failed to dampen demand for housing with lending still tracking at record levels.
The ABS reports that the value of home loans seasonally adjusted (excluding land and alterations and additions) increased by 1.8% over January compared to the previous month and remained 11.2% higher than reported over January 2021.
Home lending increased by a remarkable 44.2% over the year ending January 2022.
State results were mixed over January led by Canberra where loans were up 30.1% while new loans QLD, WA and TAS were lower.
Although home lending has rebounded strongly over three consecutive months, sharply rising affordability constraints reflecting surging prices growth over the past year will act to sideline home buyers, particularly in Sydney and Melbourne.
Affordability advantages in the other capitals will however continue to support current high levels of home buying and sharply rising prices — particularly in Brisbane and Adelaide.
Strengthening local economies, the return of mass international migration, the easing of covid restrictions and concerns, home shortages, solid investment returns, and continuing low-interest rates will act to reinforce the current robust home lending activity.
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