Home loans drop in January from December record
■ According to data from the Australia Bureau of Statistics, demand for home loans plummeted across the State in January.
There were 2240 fewer home loans in January than December, equating to a 3.9 per cent dip.
January’s statistics also appeared weak as December marked an eight-year high for home loans.
Mortgage Choice chief executive John Flavell said the drop was considerable, but not surprising, as the market tended to slow in January.
“Australians are too busy enjoying the festive season and going on holidays to worry about purchasing property or taking out a home loan,” he said.
Mr Flavell said it was important to consider that although there was a drop, the market did not “fall off a cliff ”.
“More than 55,000 home loans were approved throughout the course of the month, which is incredibly strong by historical standards,” he said.
Mr Flavell also said the data were in keeping with long-term industry trends and the market would remain robust.
“Despite ongoing commentary that some parts of Australia are in the midst of a housing bubble, interest rates continue to sit at historical lows, making the cost of borrowing incredibly affordable,” he said.
Approved home loans dropped significantly in January as per normal industry trends.