We know the property markets are booming around Australia, but I was shocked when I read that we’re buying close to $1billion worth of properties every day.
Then I drilled down into the numbers...
A record $31 billion of finance flooded into our property markets in April alone!
As you can see from the chart above, the vast majority was to owner occupiers, but clearly more investors are coming back into the market as the number of First Home Buyers is receding.
In April 25.9% of all finance approvals was to investors, still considerably below the average percentage of investor loans over the last decade which was 35%.
Let’s put things into perspective
According to Corelogic:
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- There are 10.6 million dwellings in Australia with a total value of $8.4 trillion.
- The total outstanding mortgage debt against these properties is $1.9 trillion - a loan to value ratio of around 28%.
- 53% of Australian household wealth is held in housing.
- Over 553,000 property sales occur each year.
And in the three months to May, national values rose 7%, which is the highest quarterly growth rate since November 1988.