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Growth in Australian home loans accelerated last month as financing for investment purposes bounced back with gusto.
Headline loan growth rose 0.5 per cent month on month in January, ticking upward from a revised 0.2 per cent rise in December (previously 0.4 per cent) and besting a median forecast of 1 per cent contraction from economists polled by Reuters.
Home loans to owner-occupiers grew 1.3 per cent, up from a revised rise of 1.1 per cent (previously 1.3 per cent) the previous month.
Lending for property investment recovered to grow 1.3 per cent month on month, having contracted 1 per cent in December (revised sharper from a fall of 0.8 per cent) and once again outpacing the loan flow to occupants.
Data on building approvals for January pointed to a rebound from the previous month’s contraction – though they were down 12 per cent from a year prior, with figures from Corelogic showing home prices in Australian capital cities were up 11.7 per cent year on year in February.