Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

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"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

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Friday, 9 December 2016

Loan sizes rising again

Return of investors

Monthly investor lending has continued to resurrect itself throughout 2016, from $11 billion at the end of last year to $12.5 billion in October, according to the ABS Housing Finance figures. 

Transaction volumes have been in decline lately with fewer sellers bringing their homes to market.

State versus state

The number of home loans in Western Australia has continued to trend down since November 2013 in a weak market. Elsewhere, tighter stock levels have slowed the processing of loan volumes. 

What has become clear is that with tough competition for stock, average loan sizes are rising again from $359,100 in February to $380,100 for non-first homebyers in October. Last year average loan sizes were impacted by macroprudential regulation to slow the market. 

Home lending into Queensland is on the rise. The markets of Sydney and Melbourne are being more driven by investors. 

The average loan size for first homebuyers in New South Wales soared to an all-time high of $396,500, while for non-first homebuyers the NSW figure was $449,000. 

The number of cancelled loans spiked earlier in the year, but now figures are becoming benign again.

The value of new housing commitments for both owner occupiers and investors combined declined by 0.2 per cent in October following an increase of 2.4 per cent in the preceding month, but the number of loans to buy new dwellings has fallen by 4.3 per cent from a year ago. 

There was a steady increase in the number of fixed rate loans in October. 

I'll look at the figures for investor loans in more detail on Monday.