Home loan approvals on the rise

According to new data from the Australian Bureau of Statistics (ABS), home loan approvals rose 3.6 per cent in the September quarter in comparison with the corresponding period in 2011.

"This is a very encouraging start to the 2012/2013 financial year, with excellent results from Western Australia, Queensland, the Northern Territory and the Australian Capital Territory,” Loan Market Group’s corporate spokesperson, Paul Smith, said.

“WA was up 14.63 per cent on the September quarter in 2011, while Queensland had a 7.07 per cent rise. There were even better figures in the Northern Territory, which was up 17.10 per cent and the ACT, 6.52 per cent.”

The ABS reported a modest 0.9 per cent rise nationwide in home loan approvals in September 2012, compared with the previous month, but in New South Wales the month on month growth was 1.65 per cent and in the ACT 9.26 per cent.

“The removal of stamp duty concessions in NSW resulted in a 1.4 per cent drop compared to the September quarter 2011, but month on month there was a 1.65 per cent increase – the best result in eight months,” Mr Smith said.

“The ACT had a resounding September, which was its strongest month since January 2010.”

September 2012, according to Mr Smith, was also the best month nationwide for home loan approvals since December 2011.

“There has certainly been a spring resurgence in most parts of the country and the interest rate cuts in May and June this year had some impact on activity,” he said.

“This activity should continue on the back of the latest rate cut in October; however, the recovery still has a long way to go.”