Australian Bureau of Statistics came out with lending indicators for November 2020 and the numbers show promise.
Owner occupier loan commitments jumped 7.2%, continuing a three month trend of market highs.
Those fresh to the market also made their mark, first home buyer loan commitments up 3.1% and 47.6% overall since the same period last year.
Where’s the growth?
Strongest growth appeared in the resource rich states of Western Australia and Queensland, the Capital bringing up the rear.
- Western Australia (up 144.4 per cent),
- Queensland (up 128.0 per cent),
- Northern Territory (up 127.6 per cent),
- Victoria (up 71.2 per cent),
- South Australia (up 53.1per cent),
- Tasmania (up 45.8 per cent),
- New South Wales (up 43.2 per cent), and
- Australian Capital Territory (up 28.9 per cent)
Year on year growth for November 2020, Housing Industry Association.
Did government grants help?
Housing Industry Association Economist Angela Lillicrap was positive about the effects of the grants dubbed, “HomeBuilder”.
It is evident in today’s data that HomeBuilder has been successful in boosting confidence in the market and creating work on the ground.
State based information is yet to be released, but with strong growth in the states where large state grants were available, namely Western Australia and Queensland, the growth is clearly and considerably larger than others.
Tasmania also offered its own state grants however given the smaller market, less growth was seen.