The latest housing finance data from the Australian Bureau of Statistics (ABS) shows the number of owner occupied dwelling commitments approved throughout March climbed 1.6%.
A total of 54,686 loans were approved over the month, up from 53,811 on the previous month and the highest number of home loan approvals since September 2009, according to the ABS.
“Interest rates are sitting at 50 year lows at the moment, which is encouraging more buyers to purchase property – be it an owner-occupied dwelling or an investment property,” Mortgage Choice chief executive officer John Flavell
But new research by RP Data shows dwelling prices across the combined capital cities was up by 1.4% in March which Flavell says was driven by “an exceptionally strong Sydney result where dwelling values were 3.0% higher over the month.”
He said record low interest rates combined with the growth in dwelling value would hard to resist for property investors.
“The Australian Bureau of Statistics found the value of loans approved for investment housing climbed 6.4% on a seasonally adjusted basis, taking the total value of investment housing approved throughout the month of March to just under $13 billion,” he said.
“In total, more than $31 billion worth of home loans were approved throughout the month of March – 3.5% higher than February.”
Flavell said the demand for home loans should continue as the May rate cut starts to take effect.