There Are More Owner Occupiers Than Investors In The Housing Market

The home loans to owner occupiers are reportedly accelerating at the same time as the lending to property investors are now easing off. According to a report released by the Bureau of Statistics for August, the value of loan approvals for the owner occupiers have grown by at least 6 percent over the month. Meanwhile the value of loans to the investors has fell short by .4 percent.

The owner occupier trend has jumped by about 8.8 percent, this is excluding refinancing. This is the strongest result that the sector has seen since September of 2009 according to John Flavell, the Mortgage Choice chief executive. The last time that the mortgage industry has seen more than 55,000 home loans written within a month was back in 2009. That was the time when the first home owner grant was in steady swing. To be able to see a similar level happening in the market today is quite surprising and this just proves more that the housing market industry is strong.

Last 2014, the APRA imposed a speed limit of 10 percent on the housing investor growth loan. This is a limit which appears to have been policed since the middle of the year. However, despite of the slowdown in the loans of investor and the surge in the owner-occupier borrowing, the loans from investors still accounts for approximately more than 40 percent of the total value of approvals last August. The figure will also tell you that there are plenty of people that were previously buying as investors of properties are now currently purchasing as owner occupiers in order to escape the restrictions placed on lending. The lending data from August will suggest that there is still a great deal of heat coming from the housing sector. However, owner occupiers are currently driving the market. The issue with the trend is that the change in behavior is more apparent than it is real which is driven by the recent changes in regulations. This has provided the banks with considerable inventive to classify loans as owner occupiers compared to investors. With this recent development, how would the sector of home improvement Perth do? This is still one of the issues that analysts have to pound their research on.