In the second quarter of the year, mortgage applications in Australia recorded an annual increase of 6.9%, seeing their strongest growth since June 2010. In quarterly terms, mortgage inquiries advanced 1.9%, figures from credit data provider Veda showed this week.
The housing market scored its biggest increase in demand in three years, exceeding the overall growth rate observed in consumer credit demand, which expanded by 3.9% over the previous year. The solid uptick suggests that consumers are gradually returning to the real estate market, with potential property buyers in Queensland emerging as the most cautious; applications in the region added just 1.6% in the quarter. Despite the modest increase, the results reverse the negative trend recorded in the last five quarters, Veda’s general manager of consumer risk, Angus Luffman, commented.
The strongest demand for mortgages was recorded in Western Australia, where applications soared 15%. New South Wales came second in terms of mortgage inquiry numbers, where they were 13% higher in the June quarter. The Northern Territory saw a 10.3% increase in applications and South Australia enjoyed a 7.5% rise.
The results are encouraging and suggest that house price growth will likely persist in the short run, especially in regions where demand for property loans was stronger, according to Luffman.