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By Michael Yardney

Housing loan approvals surge to be 24.4% above pre-pandemic levels and highest on record!

New housing loan approvals continued to surge in November, with the recently released ABS Lending Indicators showing borrowing increased 5.6% over the month and 23.7% year on year and this bodes well for our property markets/y (consensus 1.2% m/m) - the highest increase on record.
Investors, who had largely retreated from the market in the first half of 2020, posted a 6.0 per cent rise in November, the sixth consecutive monthly increase.
And lending in Victoria surged by 20 per cent over month as pent-up buyers did the rounds at onsite auctions and open homes when their lockdown lifted.

Housing Finance Approvals 1

Reflecting confidence in the property market and a premium on home-living during the COVID-19 pandemic, owner-occupied buyers dominated the home loan commitments, accounting for $18.3 billion of the new committed lending, though there are signs of investor activity re-emerging in NSW and QLD.

Housing Finance Approvals 3

The level of housing loan approvals could rise further with Victorian activity lagging other states given Victoria came out of lockdown in mid-October.


Finance By State

Loan approvals for construction have also risen strongly, up 5.6% in November and up some 75% since July following the Government’s HomeBuilder grant and individual state incentives, particularly in WA.

Overall the data suggests a strong lift in housing market activity, while the lift in construction finance should see a further support for detached dwelling construction.

The surprisingly strong lift in housing market activity should also flow through to stamp duty revenue for Australian state governments.

Residential Snapshot Infographic 1Interestingly re-financing activity appears to have peaked, though re-financing activity remains high.

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on in 2021


If you're wanting to take advantage of the new property wave you are not alone, but now more than ever careful property planning and selection is critical.

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About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.
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