Real Estate THURSDAY, JULY 1, 2020 FROM COAST TO
COUNTRY
WWW.TWEEDVALLEYWEEKLY.NET.AU
New housing finance hits record highs By Jonathon Howard
THE REAL estate market is running hot, with recent data from the Australian Bureau of Statistics (ABS) showing a record rise in new home loans, as interest rates hit record lows. The August 2020 Lending to Households and Business figures recently released by the ABS shows a sharp monthly rise in the value of new home loans, which includes both owner occupiers and investors, up 12.6 per cent when seasonally adjusted. The value of new loan commitments for investor housing rose 9.3 per cent to $5 billion in August, but is down 4.6 per cent for the year. Queensland and Victoria are the two states leading the charge for new investment finance. The number of first-home buyers entering the market has reached its highest point since October 2009, with a total of 12,302 buyers committing $5 billion in new mortgages – an increase of 17.7 per cent over the month and 37.3 per cent over the year. The dollar value of new loan commitments for owner occupiers
to build new homes rose 19.2 per cent in August and 43 per cent over the past 12 months. Loans for owner occupiers to purchase existing homes increased by 9 per cent in August and 13.7 per cent over the year to a total value of $11.5 billion in August. “The value of owner occupier home loan commitments was $16.3 billion in August, the highest value in the history of the series,” ABS head of Finance and Wealth, Amanda Seneviratne, said. “August’s 13.6 per cent increase in the value of owner occupier home loan commitments is the largest month-on-month rise in the history of the series, eclipsing the previous record of 10.7 per cent set in July. “New loan commitments for owner occupier housing rose in all states and territories, except the Northern Territory. “The largest increases in the value of new loan commitments were in Victoria, Queensland and New South Wales.” The data should be approached with some
Open homes *All open homes are listed in NSW time
Friday, October 23
First National Murwillumbah 25 Scott Street, South Murwillumbah, 1pm-1:30pm
Saturday, October 24 DJ Stringer
10/15-17 Ivory Crescent, Tweed Heads, 9:00am-9:30am 26/2 Rosella Close, Tweed Heads South, 10:00am-10:30am 2/75 Jacaranda Avenue, Tweed Heads West, 10:00am-10:30am 2/5 Cabernet Court, Tweed Heads South, 11am-11:30am U2135 Tweed Ultima, Tweed Heads, 10:00am-10:30am U2021 Tweed Ultima, Tweed Heads, 10:30am-11:00am 8/2 Endeavor Parade, Tweed Heads, 11am-11:30am 3/61 Charles Street, Tweed Heads, 11am-11:30am
119 River St, Murwillumbah
Housing finance for owner occupiers has increased by almost 20 per cent in the past year
caution, according to the ABS, as borrower behaviour and lender processing times have been strongly affected by the COVID-19 pandemic, and this is impacting month-on-month movements. “Lenders are reporting to us that current processing times mean that August commitments reflect customer demand in June and early July, prior to Victoria imposing stage 3 and stage 4 restrictions,” Ms Seneviratne said.
Meanwhile, the Australian Banking Association has reported that repayments have resumed on almost half of all deferred mortgages and small businesses loans, reducing the risk of a future ‘fiscal cliff’. The Real Estate Institute of Australia (REIA) has welcomed the announcement, with its president Adrian Kelly, saying the news is promising for the real estate market. “The resumption of repayments in about half the cases is
17/83 Gollan Drive, Tweed Heads West, 11am-11.30am 14/21 Dixon Street ,Coolangatta, 11.30am-12pm 14 Marie Street, Tweed Heads South, 12pm-12:30pm 11/30 Lanham Street, Coolangatta, 12:30pm-1pm 1 Hill Street, Tweed Heads, 1pm-1:30pm 4/27-29 Dutton Street, Coolangatta, 1.30pm-2pm 8/27-29 Dutton Street, Coolangatta, 2pm-2.30pm 73 The Quarterdeck, Tweed Heads, 3pm-3:30pm
First National Murwillumbah
25 Scott Street, South Murwillumbah, 9am-9:30am 99 Riveroak Drive, Murwillumbah, 10am-10:30am 57 Kyogle Road, Bray Park, 10am-10:30am 63 Braeside Drive, Uki, 11am-11:30am 11 The Plateau, Murwillumbah, 11am-11:30am 17 Baker Street, Murwillumbah, 12pm-12:30pm 1345 Tyalgum Road, Eungella, 1pm-1:30pm
Ray White Tweed Valley
20 Banora Terrace, Bilambil Heights, 12pm-1pm
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an encouraging sign that mortgagees will not be facing a cliff that some anticipated a few months ago,” Mr Kelly said. “The banks’ commitment to working with customers is welcomed; and suggests fire sales will be an absolute last resort as the recovery commences.” For those still struggling to make their repayments, Mr Kelly’s advice is to “talk to your banks early and often”.
Raine & Horne Ocean Shores/Brunswick Heads/ Murwillumbah 9 Banool Circuit, Ocean Shores, 9am-9.30am Pinnacle Estate, Ramsay Close, Goonellabah 9am-10am 1 Uki Street, Murwillumbah, 9.30am-10.00am 16/2 Rajah Road, Ocean Shores, 9.30am-10am 12 Borton Street, Ballina, 10.00am-10.30am 39 Yamble Drive, Ocean Shores, 10.30am-11.00am 1 Hunter Street, Burringbar, 11.00am-11.30am 1/4 Roundhouse Place, Ocean Shores, 11am-11.30am 17 Philip Street, South Golden Beach, 11.30am-12.00pm 120 Balemo Drive, Ocean Shores, 12pm-12.30pm 1 Elanora Ave, Pottsville, 12.30pm-1pm 69 Argyle Street, Mullumbimby, 1pm-1.30pm
Sunday, October 25
Ray White Tweed Valley 20 Banora Terrace, Bilambil Heights, 12pm-1pm
10 McPherson Court, Murwillumbah
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