Loan Approvals on the rise, buyers start getting back in

[BoatBoy]

Australia’s Loan Approvals Rise for First Time in Nine Months




By Jacob Greber
Dec. 10 (Bloomberg) -- Australian home-loan approvals increased in October for the first time in nine months after the central bank slashed borrowing costs to encourage property buyers back into the market.
The number of loans granted to build or buy homes and apartments rose 1.3 percent to 48,299 from September, when they slid a revised 2.4 percent, the statistics bureau said in Sydney today. The median estimate of 21 economists surveyed by Bloomberg News was for a 1 percent gain.



<snip>


The total value of lending rose 1.9 percent to A$17.4 billion in October, today’s report showed.
Lending to owner-occupiers advanced 2.4 percent, while the value of lending to investors who plan to rent or resell homes gained 0.7 percent.

full article here

http://www.bloomberg.com/apps/news?pid=20601081&sid=a_eEe1F7MZv4&refer=australia

Dave

 

[Token Funder]

Actual ABS Figures Available As Well

http://www.abs.gov.au/ausstats/[email protected]/mf/5609.0?OpenDocument


OCTOBER KEY POINTS


VALUE OF DWELLING COMMITMENTS

October 2008 compared with September 2008:

• In trend terms, the total value of dwelling finance commitments excluding alterations and additions decreased 0.4%. Investment housing commitments decreased 0.8% and owner occupied housing commitments decreased 0.3%.
• In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions increased 1.9%. Owner occupied housing commitments increased 2.4% and investment housing commitments increased 0.7%.

NUMBER OF DWELLING COMMITMENTS

October 2008 compared with September 2008:

• In trend terms, the number of commitments for owner occupied housing finance decreased 1.0%. The number of commitments for owner occupied housing finance excluding refinancing fell 0.3%.
• In trend terms, the total number of commitments for the refinancing of established dwellings fell 2.5%, while the seasonally adjusted series increased 3.3%.
• In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments decreased from 19.7% in September 2008 to 19.5% in October 2008.
• In original terms, the number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments decreased from 3.3% in September 2008 to 3.0% in October 2008

 

[chilliaa]

Ah but the key point here, is that this is OCTOBER's figures.
We had big rate reductions in both November and December, these rate reductions wont be shown in the statistics for another one & two months.

The other confidence booster is the consumer confidence level which rose in December for a second straight month including this: An index measuring whether it’s a good time to buy a major household item jumped 28.2 percent in December from November

 

[lowell]

full article here

http://www.bloomberg.com/apps/news?pid=20601081&sid=a_eEe1F7MZv4&refer=australia

Dave

WOW those figures are amazing.

The number of loans granted across the whole of australia to build or buy increased by about 600 from the September figure. How many towns are there in Australia?

Gee the buyers are rushing in... BUY BUY BUY

Lets get a grip.

 

[lizzie]

i wonder how market sentiment will be when the redundancies start to kick in early next year ...

 

[virgo]

New Loans

Hiya

Anecdotal evidence:

Spoke to my Westpac banker today who almost happens to be a close friend. Apparently she had to work till 11pm last night processing new loans.

HOWEVER the loans are coming from new FHOB and in the low value properties. Higher end property are suffering .....(note: sydney > 800K)

Cheers
jennifer

 

[BoatBoy]

Lets get a grip.

You first Lowell

 

[sparky23]

Just what I have been trying to say for the last couple of weeks!