Despite all the doom and gloom in the media, the latest data from the ABS reveals some sign of life in Victorian home loan activity, which may be an indication that the Victorian property market is finally stabilizing.
Victorian seasonally adjusted owner-occupied home loans increased by 4.1 per cent in April compared with the figures for March.
Seasonally adjusted figures for the year thus far, show a slightly higher (1.8%) number of home loans than for the same period during 2010.
In terms of numbers, 51,150 owner-occupied home loans were recorded over the first four months of 2011, compared to 50,603 for the four months ending April 30, 2010.
This is a positive sign as far state of health of the Australian property market is concerned, given that in early 2010 the market clearance rates were higher and the overall price points were moving up in most states.
In April of this year, 13,091 new home loans were taken out, compared with 12,173 in April 2010 – a significant 7.5 per cent increase in loan activity.
The average home loan amount for an owner occupier in Victoria went up for the first time this year, from $285,600 in March to $285,700 in April.
The average size of first home buyers home loans also increased in April compared to March, rising 2.3 per cent from $270,900 to $277,200.
While the increases are small they do point to a sing on greater stability in the market