Demand for home loans 'has risen robustly'

Friday 30 December 2011

Article by Mozo

The demand for home loans in Australia has grown sharply since March 2011, new figures have suggested.

Demand for home loans 'has risen robustly'

According to the latest RP Data-Rismark Home Value Index, the clamour for mortgages in the latter part of 2011 has offered encouragement to the house building sector.

The study also indicated that capital city home values grew by 0.1 per cent in November, after property buyers were buoyed by cuts to interest rates. This represented the first increase since December 2010.

Regional house values also rose by 0.3 per cent during the month, which has led Rismark director Christopher Joye to predict a brighter future for the housing sector in 2012.

"The best proxy for housing demand – the number of new home loans approved for purchasing established properties – has risen robustly every month since its nadir in March," he remarked.

First-time buyers have also been keen to enter the market before new stamp duty payments come into force from January 1st, the Daily Telegraph recently reported.

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