Investors share on the loan market have increased to 40.6% for August, well above the average of 30.9% for the past 23 years, clear signs that the insatiable appetite for property are far from satisfied.
Refinanced owner occupied home loans have also increased to a record high 49.7%, well above the long term average of 36.5%. Despite these numbers, home lending for investors has actually slowed down, rising just 6% in 6 months, compared to a 21% increase 6 months before. Home buyers are clearly outgunned as lending dropped by 4% in the past 6 months, as opposed to a 9% gain 6 months prior.
Despite the Reserve Bank’s warning on the glaring disparity between home buyers and investors, the building industry has remained as one of the most optimistic sectors in the economy as the mining boom starts to fade.
Read more about this on the Australian website.