The increase in the value of loans for investors “may continue to cause policymakers angst over 2017″ says Craig James, chief economist of CommSec.
The value of property loans by investors surged by 4.9 per cent in November to be up 21.4 over the year – the strongest annual growth in 19 months.
The value of loans overall rose 2.2 per cent in November after rising by 0.5 per cent in October. Owner-occupier loans rose by 0.4 per cent, but investment loans rose by 4.9 per cent.
The number of loans for owner-occupiers rose by 0.9 per cent in November after falling by 0.6 per cent in October, only the second rise in lending in five months.
The proportion of first-time buyers in the home loan market rose minutely from 13.7 per cent to 13.8 per cent in November, and remains well below the long-term average of 19.4 per cent.”The lift in the value of loans was largely driven by investors,” says Craig James, chief economist of CommSec,
“The lift in the value of loans was largely driven by investors,” says Craig James, chief economist of CommSec, indicating that “the housing landscape may continue to cause policymakers a little bit of angst over 2017.”
“If home prices continue to lift, with growth largely driven by investor loans, regulators may look at further restrictions to curb lending,” said James.