The Times Australia
Mirvac Harbourside
The Times Real Estate

.

New home lending remains weak

  • Written by HIA

The ABS released the housing, personal and business lending data for May 2024 today, which provides the latest statistics on housing finance commitments.

“Lending for new home purchase and construction decreased by 3.3 per cent in the month of May,” stated HIA Senior Economist Matt King.

“There were 4,693 loans issued for the purchase and construction of new homes in the month of May in seasonally adjusted terms,” added Mr King.

“This leaves the three-month period to May 2024 with 13,988 loans for new homes, which is 7.9 per cent higher than in the previous quarterly period.

“Lending for new homes in the most recent three-month period to May 2024 is up by 8.8 per cent compared to the same time in the previous year.

“Lending for new homes remains around the lowest levels observed since interest rates began rising, and well below the 20-year average.

“This continued weak result in new home lending does not bode well for the supply and delivery of new homes to market in short to medium term.

“There were 66,818 loans issued for the purchase of established homes in the three months to May 2024 (in seasonally adjusted terms).

“This is up by 6.1 per cent compared to the same quarter in the previous year. Over the last year, lending for established homes has remained stable compared to new home lending.

“Lending to first home buyers continues to remain soft in the face of historic affordability constraints.

“The number of loans issued to first home buyers was down 3.3 per cent in May but was up 7.4 per cent in the three-month period to May 2024.

“All categories of home lending point to ongoing weakness in the new home market.

“Only 172,725 dwellings were completed in the calendar year 2023. With annual demand for housing sitting above 227,000 homes a year, and a resulting shortfall more than 50,000 homes a year, this will add further strain to historically high dwelling prices and rents across the country.

In original terms, the total number of loans issued in the three months to May 2024 for the construction or purchase of new homes rose in Western Australia by 49.0 per cent compared to the previous year. This was followed by Queensland (+13.9 per cent), Tasmania (+10.8 per cent), and New South Wales (+4.6 per cent). The other jurisdictions recorded a decline in lending for new homes, led by the Australian Capital Territory (-22.3 per cent), followed by the Northern Territory (-13.1 per cent), Victoria (-2.3 per cent), and South Australia (-1.7 per cent).

Property Times

Rubber vs Concrete Wheel Stops: Which is Better for Your Car Park?

When it comes to setting up a car park in Perth, wheel stops are a small feature that make a big difference. From improving driver accuracy to preventing costly damage, the right choice between rubber and concrete wheel stops could save you time, mon...

What Is the Australian Government First Home Buyers Scheme About?

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. To ease this burden, the Australian Government has introduced a First ...

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages and risks, and choosing the right one depends on your financial goals, ...

A Guide to Smarter Real Estate Accounting: What You Might Be Overlooking

Real estate accounting can be a complex terrain, even for experienced investors and property managers. From tracking rental income to managing property expenses, the financial intricacies of real estate demand more than just basic bookkeeping. A si...

Mirvac Harbourside

Times Magazine

Building a Strong Online Presence with Katoomba Web Design

Katoomba web design is more than just creating a website that looks good—it’s about building an onli...

September Sunset Polo

International Polo Tour To Bridge Historic Sport, Life-Changing Philanthropy, and Breath-Taking Beau...

5 Ways Microsoft Fabric Simplifies Your Data Analytics Workflow

In today's data-driven world, businesses are constantly seeking ways to streamline their data anal...

7 Questions to Ask Before You Sign IT Support Companies in Sydney

Choosing an IT partner can feel like buying an insurance policy you hope you never need. The right c...

Choosing the Right Legal Aid Lawyer in Sutherland Shire: Key Considerations

Legal aid services play an essential role in ensuring access to justice for all. For people in t...

Watercolor vs. Oil vs. Digital: Which Medium Fits Your Pet's Personality?

When it comes to immortalizing your pet’s unique personality in art, choosing the right medium is ...

The Times Features

Do kids really need vitamin supplements?

Walk down the health aisle of any supermarket and you’ll see shelves lined with brightly packa...

Why is it so shameful to have missing or damaged teeth?

When your teeth and gums are in good condition, you might not even notice their impact on your...

Australian travellers at risk of ATM fee rip-offs according to new data from Wise

Wise, the global technology company building the smartest way to spend and manage money internat...

Does ‘fasted’ cardio help you lose weight? Here’s the science

Every few years, the concept of fasted exercise training pops up all over social media. Faste...

How Music and Culture Are Shaping Family Road Trips in Australia

School holiday season is here, and Aussies aren’t just hitting the road - they’re following the musi...

The Role of Spinal Physiotherapy in Recovery and Long-Term Wellbeing

Back pain and spinal conditions are among the most common reasons people seek medical support, oft...

Italian Lamb Ragu Recipe: The Best Ragù di Agnello for Pasta

Ciao! It’s Friday night, and the weekend is calling for a little Italian magic. What’s better than t...

It’s OK to use paracetamol in pregnancy. Here’s what the science says about the link with autism

United States President Donald Trump has urged pregnant women[1] to avoid paracetamol except in ...

How much money do you need to be happy? Here’s what the research says

Over the next decade, Elon Musk could become the world’s first trillionaire[1]. The Tesla board ...