Home Loans Surge… But the RBA Just Hit the Brakes | Property Insiders

Why It Matters

If the lending spike proves temporary, higher rates and weaker confidence could cool the market; but persistent supply constraints risk keeping prices elevated, complicating affordability and policy responses for buyers and investors.

Summary

Australia’s December-quarter ABS data show a sharp rise in home lending—total home loans up 5.1% in the quarter and 13.4% year‑on‑year—with first‑home buyer and investor lending notably stronger (first‑home buyers +6.8% quarter, +9.1% year; investors +5.5% quarter, +23.6% year). New South Wales led lending activity while Victoria posted the strongest investor growth and remains top for first‑home buyer volumes. Economists warn the figures mostly predate the recent RBA rate increase, so the surge may reflect the last lift from earlier rate cuts and government incentives rather than a sustained upswing. Coming data on building approvals and auction results also point to worsening supply shortages, which could sustain price pressure even if demand softens.

Original Description

If you're looking for Direction, Certainty, and Wealth Producing Results in property and wealth creation why not get my team at Metropole to discuss your options: https://metropole.com.au/enquiry/

Just when it looked like confidence was returning to Australia’s housing market, the Reserve Bank has thrown another curveball.

The latest ABS figures show home loans rising strongly - including a surge in first home buyer activity - suggesting buyers were starting to lean back into the market.

But here’s the catch…those lending figures were recorded before the most recent interest rate rise.

So the big question is: Are we seeing the early stages of a new property upswing, or was this simply the last burst of optimism before higher rates bite again?

Because when interest rates rise, it’s not just borrowing capacity that falls - it’s buyer confidence.

And confidence is what moves property markets.

This is what Dr. Andrew Wilson and I discuss in this week's Property Insiders chat as well as the latest building approvals and auction clearance results which suggests the supply problem isn’t just continuing - it may actually be getting worse.

--

You can also read the full article on Property Update: https://propertyupdate.com.au/property-news-headlines-forecasts/

If you're looking for Direction, Certainty, and Wealth Producing Results in property and wealth creation why not get my team at Metropole to discuss your options: https://metropole.com.au/enquiry/

#PropertyInsiders #MichaelYardney #DrAndrewWilson #AustralianPropertyMarket #PropertyInvestment #RealEstateInsights #MarketUpdates #PropertyTrends