THE number of home loans approved by banks and other lenders during the month of November has gone beyond market expectations, making economists believe that 2012 will be a good year for property.
We have already seen 2 rate cuts in late 2011 and further cuts are expected in early 2012. This will undoubtedly boost demand for home loans as well as property.
It generally takes several months for the results of any economic action to reflect in the property market.
State by state, NSW has performed better than any other state, plus 4.2 per cent, though perhaps flattered by home loans approvals being brought forward ahead of the January 1 increase in state stamp duty.
“New South Wales had a very bad start to 2011 but has shown improvement each month since then.
“Oversupply of property in Victoria seems to be hurting the state, minus 0.2 per cent for a third consecutive decline.
“Queensland remains sluggish, up 0.9 per cent, only after two declines while WA held up with a 0.9 per cent gain.”
First-home buyers accounted for 20 per cent of total owner-occupied home loans taken out in November, up from 19.1 per cent for the previous month.
This trend is likely to continue into the new year.