Lending to buy homes has jumped in line with the recovery in Australian housing prices.
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The Australian Bureau of Statistics recorded a 4.8 per cent rise in May, to $24.9 billion, with the total value of new owner-occupier loan commitments increasing for owner-occupiers and investors.
The value of new investor loan commitments rose 6.2 per cent, to $8.5 billion, whereas new owner-occupier loan commitments rose four per cent, to $16.4 billion.
Oxford Economics Australia senior economist Maree Kilroy said national home loan commitments had recorded the strongest monthly lift since November 2021.
Loans for established dwellings rose 4.2 per cent over the month, which Ms Kilroy said was consistent with the rebound in housing prices.
National property values recorded another jump in June, lifting 1.1 per cent by CoreLogic's measurements and proving resilient to interest rate hikes.
But Ms Kilroy said there had been signs of softening in property prices over recent weeks, with the pace of price growth slowing in June and auction clearance rates taking a step back.
"We are wary of price growth holding through the new financial year."
The Corelogic data revealed a slight pullback in the rate of growth across several cities, including Perth.
Sydney continues to lead the rebound, posting 1.7 per cent growth in June, down a touch from the 1.8 per cent increase in May.
Brisbane was the only other city to record above one per cent growth, lifting a convincing 1.3 per cent in June.
CoreLogic research director Tim Lawless said the slowdown in the pace of capital gains could be a reflection of shifting sentiment as the Reserve Bank remained determined to beat down stubbornly high inflation.
"Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply," he said.
Despite the slower pace of growth, Mr Lawless said the upswing was widespread, with every capital city aside from Hobart recording higher dwelling values in June.
Regional dwelling values also lifted but more slowly compared with the big cities, growing by 0.5 per cent collectively.
The ABS also released new building approvals data on Monday that showed national dwelling approvals lifting 20.6 per cent in May, with the recovery driven by large apartment developments that tend to swing the dataset around.
Dwellings excluding houses rose 59.4 per cent, whereas approvals for private sector houses were more subdued, lifting 0.9 per cent.
Australian Associated Press
