Mortgages continue to grow at record pace, driven by enthusiastic demand from first-time buyers, despite new highs in home prices in the first few weeks of 2021 I will.
The risk of overheating in the housing market could raise future concerns for the Reserve Bank of Australia.
However, economists do not anticipate short-term changes in monetary policy when the board meets for the first time this Tuesday.
According to the Australian Bureau of Statistics, the value of the new home mortgage commitment in December was up 8.7% to $ 19.9 billion, 38.9% higher than the previous year.
The number of homeowner’s first mortgages increased by 9.3%, up 56.6% from December 2019.
“Federal and state measures, such as homebuilders, and historically low interest rates support continued growth in mortgage commitments,” said Amanda Sene, head of finance and wealth at ABS. Viratone says.
Mortgage Demand from First Home Buyers Since June 2009, Similar Rapid Growth Was Caused by Temporary Triples of First Home Owner Subsidies to Help Fight the Global Financial Crisis Is currently at the highest level.
Another figure shows that national home prices rose another 0.9% in January and are now 0.7% above the previous September 2017 peak.
The value of local wealth has grown at twice the pace of the capital’s housing market, and the difference is even more pronounced in Sydney and Melbourne, where migration is scarce.
“Affordable housing prices, lifestyle upgrade opportunities, and low-density housing options have contributed to this trend, along with the new popularity of remote work arrangements,” said Tim Lawless, Research Director at CoreLogic. There are other factors that may be present. “
Shane Oliver, Chief Economist at AMP Capital, believes that Reserve Banks may begin to feel a little uneasy about the pace of lending commitments and home price recovery.
“At least, it makes sense that incentives for renters will be rewound and not extended in the coming months,” Oliver said.
“Given the continued uncertainty and reserves of the wider economy, it is likely that it is too early for the RBA to start raising interest rates.”
According to the Prime Minister, Monday’s data release is another sign of Australia’s rapid recovery from last year’s recession.
“The economy is already back and improving the experience of today’s most developed countries in the world,” Scott Morrison told the National Press Club.
“Australian people are now voting on their own to participate in the economic recovery,” he added, noting that the unemployment rate dropped unexpectedly to 6.6%.
But shadow finance officer Jim Chalmers said what he does for the two million Australians who can’t find a job or find enough working hours. He said he missed the opportunity to decide.
New classified ads figures suggest further employment growth in the first half of 2021.
ANZ’s classified ads series grew 2.3% in January, growing for the eighth straight month and is now at its highest level since April 2019.
At the same time, manufacturers used the normally quiet New Year holidays to make up for the business lost in 2020 during the recession.
The performance of the Australian Industry Group’s Manufacturing Index has increased 3.2 points to 55.3 points in the last two months, indicating a growing sector.
Mortgages are skyrocketing in Australia as owners borrow $ 20 billion in December.housing
Source link Mortgages are skyrocketing in Australia as owners borrow $ 20 billion in December.housing