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By Dr. Andrew Wilson

Home loans down sharply over September

key takeaways

Key takeaways

Housing loan commitments fell sharply (-8.2%) over September, its fourth consecutive month of decline.

Despite the sharp falls,the level of housing loan commitments is still 32.8% higher than pre-pandemic February 2020 levels, though have fallen -24.3% from its January 2022 peak.

Owner-occupier loan commitments fell -9.3% month on month and investors fell -6.0% month on month.

First-home buyer loan activity has also fallen sharply over the past year (-26.0% year on year).

Loans for new construction also fell -12.4% month on month and -12.9% year on year.

Home lending fell sharply over September with the rate of decline accelerating significantly compared to the more moderate August fall.

The ABS reports that the value of home loans seasonally adjusted (excluding land and alterations and additions) decreased by 7.8% over September compared to the previous month and is now 19.7% lower than reported over September 2021.

Home lending over the first nine months of 2022 is 4.7% lower than recorded over the same period last year.

Abs National Home Loans Seasonally Adjusted 02 November

All states recorded falls in seasonally adjusted home lending over September with NT, TAS and WA the underperformers, falling by 17.6%, 15.0% and 12.0% respectively.

Abs Home Loans Monthly Change September 2022

Home lending can be expected to continue to decline over the coming months as affordability and confidence are impacted negatively by further increases in interest rates despite falling home prices.

About Dr. Andrew Wilson Dr Andrew Wilson, Chief Economist of is widely regarded as Australia’s leading property economist.
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