Home loan demand remains high in May

Wednesday 08 July 2009

Article by Mozo

Demand for new home loans remained high in May, new figures from the Australian Bureau of Statistics (ABS) show.

The organisation has reported that the number of home loans approved for owner-occupied housing rose 2.2 per cent in May, when compared to the previous month.

During the period, some 63,808 home loans were approved, while an additional 6,157 loans were approved for the construction of new properties.

Speaking to the AAP after the publication of the figures, Nomura Australia chief economist Stephen Roberts said that the number of home loan approvals were touching levels not seen since the property boom in 2006 and 2007.

"These numbers are clearly very strong and still very heavily concentrated in the first-home buyers segment, as you would expect," he said.

However, Mr Roberts added that once the first-home buyers grant boost expires in September, the country should expect a sharp drop in home loan applications.

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