Yahoo Finance $1.41 billion down: Sign property prices will drop further
The Aussie property market cool-off is hitting its stride, with new home-lending data showing prices are set to fall even further.
The value of new home loans dipped by $1.41 billion in June, to $30.97 billion, as property prices in key capital cities fell.
According to the ABS lending indicators for June, owner-occupier lending fell $707.4 million – a 3.3 per cent drop from the previous month, in seasonally adjusted terms.
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Investor lending also dropped by $707 million, down 6.3 per cent, but was still up $1.54 billion - or 17.3 per cent - compared to a year ago.
“The value of new home loans will likely continue to fall as the property market cools,” RateCity.com.au research director Sally Tindall said.
“Many people who were looking to buy homes have put their house-hunting plans on hold and are waiting for prices to drop further before jumping in.”
This has also been reflected in the shrinking value of the loans Aussies are applying for.
The ABS data found the national average new loan size continued to slide, down 0.86 per cent ($5,265).
That said, compared to a year ago, the average new loan size was up $53,830 or 9.68 per cent.
Monthly drops were recorded in NSW, Victoria, Queensland and Tasmania. All other states and territories rose.
First home buyers waiting it out
First home buyers in particular have stopped applying for loans to get into the property market, with the ABS data showing the number of new-occupier loans dropping 8 per cent in June.
In dollar terms, the drop in first-home-buyer lending was even bigger, down 10 per cent, reflecting property price falls.
“Seeing house prices drop may be a welcome relief for first home buyers who have been all but shut out of the market over the last year because of the surging property prices,” Tindall said.
“However, first home buyers will also find the amount the bank is willing to lend them has also shrunk and will continue to fall as rates rise, which may again price them out of the market.”
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