Mortgage demand still strong

According to the latest housing finance data from the Australian Bureau of Statistics, 52,153 loans were approved in seasonally adjusted terms over the month of June – 0.2 per cent higher than the month before.

The number of loans approved for the construction of dwellings climbed 1.1 per cent, while the number of loans approved for the purchase of new dwellings jumped 4.6 per cent over the month of June.

Mortgage Choice spokesperson Jessica Darnbrough said these results reflected recent research conducted by RP Data which found capital city dwelling values rose 1.4 per cent in June.

“The research showed all capital cities, bar Adelaide and Darwin, recorded a rise in dwelling values over the month of June,” Ms Darnbrough said.

“The 1.4 per cent growth in property values across the combined capital cities capped off a sensational year for the property market, with dwelling values soaring 10.1 per cent over the 12 months to July 2014,” she said.

“Looking across the country, Sydney and Melbourne led the charge in terms of dwelling value growth, with the capital cities recording 15.4 per cent and 9.4 per cent growth respectively.”

Ms Darnbrough said the property market remains very attractive to buyers and this is evidenced by the fact that home loan approvals are currently hovering around four-year highs.

“Moving forward, with rates continuing to sit at historically low levels and lenders competing aggressively for business, I think we can expect to see good demand for home loans, with approvals continuing to hover around four-year highs,” she said.