MORTGAGE FIGURES REVEAL PATCHY RECOVERY OVER LAST FINANCIAL YEAR
Mortgage figures for June published today by AFG, Australia’s largest mortgage broker, show that while some states surged ahead during the last financial year, others are struggling. Overall, national mortgage sales were up 17% in June 2013 compared to the same month last year. Leading the pack was WA, up 30% followed by VIC (25.8%) and NSW (19.9%). But QLD sales for June were 2.7% lower than in June 2012, and SA figures were 10.3% lower.
The patchiness is also reflected in average loan sizes. Last month these were $494k in NSW, $408k in WA, $388k in VIC, $344k in QLD and $322k in SA.
Mark Hewitt, General Manager of Sales and Operations says: ‘The mortgage market is continuing to become more and more complex. We are seeing patchiness across the states as WA and NSW in particular grow strongly, while QLD and SA are still soft. First home buyers are particularly active in WA, but hardly feature in QLD and NSW since grants were cut. Political uncertainly, concerns about China and the economy in general are giving buyers a lot to think about. That said, 95% of people are employed and rates are at their lowest in 30 years. We’re hoping that a gradual return of confidence over the next financial year will see a broader based recovery take place.’
The AFG Mortgage Index also showed Fixed rate mortgages continue to come off their all time high of 30% of all mortgages arranged in April 2013. Last month they comprised 27.4%, still a high figure in historical terms.
Borrowers looking to refinance comprised 37% of all new home loans last month – in line with long term figures.
