Following the historic fall in the value of loans in May, the June 2020 Lending to Households and Business figures just released by the Australian Bureau of Statistics, show the value of new loan commitments for housing has rebounded, according to the Real Estate Institute of Australia (REIA).
"The value of new loan commitments for owner occupier housing rose 5.5 per cent in June and 8.7 per cent for the year with the majority of the rise in Queensland and NSW, while Victoria has declined," said Adrian Kelly, President of REIA.
"The rise in housing loan commitments in June reflects the easing of COVID-19 restrictions in May on auctions and open houses, but despite the recovery in lending activity the value of housing loan commitments in June was down over 10 per cent compared to March after large falls in April and May."
"The value of new loan commitments for investor housing rose by 8.1 per cent following the previous month's fall of 15.6 per cent.
"The June increase can be attributed largely to NSW which outpaced all other states.
"Owner occupier first home buyer loan commitments increased by 6.2 per cent in seasonally adjusted terms with all states and territories apart from Victoria and ACT showing increases."
"The recovery in lending is not unexpected with restrictions easing throughout the month. Whilst the roller coaster in lending will continue, the low levels of supply will hold the market up," concluded Mr Kelly.