The latest ABS data saw September increase by 5.9% for finance secured for the purchase of a property, which made the September quarter increase to 20%, which is the highest growth rate on record!
The increase experienced in the September quarter is a result of various factors including eased social distancing restrictions and a historically low cash rate which has seen banks pass on the cut to home owners – with some owner-occupied rates now beginning with a “1”.
In comparison, the June quarter had a 10.9% contraction in housing finance – keep in mind this drop was also when strict social distancing measures were in place and also bans on open home inspections and onsite auctions.
Queensland accounted for 31% of the uplift in finance nationally, where the value of housing commitments (excluding refinances) increased 40.2% in Queensland over the September quarter.
NSW came a close second which saw an increase of 16.7% which contributed 30% nationally.
Amongst the ABS data it was prevalent that owner-occupiers and first home buyers were dominating the September quarter. The rise of first home buyer’s has only been intensified by COVID-19, as government stimulus targeted the construction of new homes and first home buyer grants.
If you are interested in refinancing your home, purchasing or building a new home or know of someone who is, please contact your closest Chase Edwards Office Today!