With house prices having fallen 4.8 per cent across the country, the weakest conditions in a decade, and the biggest market of Sydney down 8.9 per cent in the last 12 months, banks have become more concerned about loan to value ratios and refinancing.
While the investors have fled, the figures for November showed that first home buyers are building as a part of the overall home lending market.
The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 18.3 per cent in November up from 18.1 per cent in October.
The weaker numbers are consistent for November – a month when the spring property market traditionally starts to ease back.
Auction clearance rates were in the low 40 per cent range during November, clearly reflecting the lower appetite from banks to lend and investors to borrow.
Lending for the construction new dwellings was down 2 per cent while lending for the purchase of new dwellings was up 3.4 per cent. Lending for established homes was also down 1.1 per cent.
PWC chief economist Jeremy Thorpe said the housing finance data reflects investor concerns about obtaining finance in the tighter post-royal commission environment.
“This has been exacerbated by the potential for depressed capital growth with the current house price correction and post-election uncertainty about the market environment,” Mr Thorpe said.
from Just News Viral http://bit.ly/2TUAf4x
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