Real Estate Investment:Today

Home loans plunge over April

Home lending activity declined sharply over April with buyer activity sidelined as a result of holiday distractions, the looming federal election and the increased likelihood of higher interest rates impacting confidence.

Declining affordability as a result of recent strong home price growth has also acted to reduce buyer capacity and decrease activity levels.

The ABS reports that the value of home loans seasonally adjusted (excluding land and alterations and additions) decreased sharply by 6.5% over April compared to the previous month to be 4.7% lower than reported over April 2021.

Home lending over the first four months of 2022 however remains 4.6% higher than recorded over the same period last year.

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