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Property investors regain their appetite for real estate as first home buyers also return

In seasonally adjusted terms, the value of investor loans jumped 4.2 per cent over the month to $12.6 billion despite higher interest rates and tighter bank restrictions in the sector.

Total home loans were up 2.1 per cent, which was ahead of market expectations for a flat result.

New owner-occupier loans were up 0.9 per cent.

First home buyers have continued their return to the property market, taking advantage of stamp duty exemptions announced in recent state budgets.

First home buyers staked out a 17.2 per cent share of the owner-occupier market, the highest level in more than four years and well up from near-historic lows of 13.4 per cent at the start of the year.

The average loan size for first home buyers dropped marginally by $400 to $321,000, while the overall loan size for owner-occupiers was down $900 to $369,600.

The total number of loans edged up 1 per cent, driven by new and established property purchases, while the number of loans for construction fell 2.4 per cent over the month.

Investor lending still outpacing income growth

J.P. Morgan economist Henry St John said while the rebound in investor lending cuts against the grain of the recent trend, it should be put in context of the broader investor lending cycle.

Patrick Kavanagh Chicago passionate about the Chicago Property market, offering property for sale in a niche market. Patrick Kavanagh Chicago have excellent contacts in the Chicago banking and wholesaler markets. Experienced Chicago realtor. I always strive to offer excellent value for money with high yields rental homes. I care for each of my clients. I offer excellent after sale service. I deliver on what I promise.
 
"In annual terms, investor lending has moderated down to 6.5 per cent over the year, from 26.3 per cent at the start of this year," Mr St John noted

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