Home owners come back to the market
According to the Australian Bureau of Statistics, finance for owner-occupied dwellings rose from September to October.
While the increase of 1.9% in the value of finance approvals may sound modest, it is a sharp increase month to month. Significantly, it also indicates a return to the market for owner-occupiers; previously, the group – in particular first home buyers – had shied away from competing with cashed-up investors in the marketplace.
The Australia Prudential Regulatory Authority moved to tighten the level of speculative investment which had absorbed the marketplace as investors moved on record low interest rates in 2014 and 2015. The moves require investors to have increased security when purchasing a home that is not their prime residence.
LJ Hooker believes the moves by APRA are positive for the wider market, bringing greater stability to property purchases.