This article is from the Australian Property Journal archive
MORTGAGE sales have fallen by 15.6% in the month of April to $2.1 billion and are 10% lower compared to the same period last year, according to Australia’s largest mortgage broker, AFG.
On a volume per business day basis, April was somewhat higher ($117 million) than March ($111 million), but both these figures are well below those recorded in previous years.
AFG’s general manager of sales and operations Mark Hewitt said falling property prices, rising interest rates, the increasing cost of living and the fear of a carbon tax and other levies are a toxic combination to consumer confidence.
“As people start to see their net worth eroding because of falling home and investment property values, they become even less likely to spend.
“The Government needs to address this problem in its forthcoming budget, and provide a circuit breaker to restore confidence among consumers that the underlying fundamentals of our economy are still strong,” he added.
New South Wales was the most popular with First Home Buyers, who comprised 17.3% of all mortgages processed in the state – well above the national average of 13.9%.
The state was also second highest in popularity with property investors who accounted for 37.5% of all new mortgages processed – behind Victoria, where 38.4% of mortgages were processed for investors.
Fixed rate home loans remained steady, comprising 6.4% of the product mix, reflecting consumer caution at locking in rates over the long term. Refinancing figures were also unchanged, accounting for 36.7% of all new home loans processed in April.
Australian Property Journal
