Prime Minister Scott Morrison has responded to recent data that reveals a record slump in new home loans, noting the drop was not unexpected and the Australian property sector remains resilient.
Speaking on the Australian Bureau of Statistics data which indicated new loan commitments for housing dropped 11.6 per cent in May, Mr Morrison said it was not surprising to see concern among consumers right now.
“Of course you’re going to see a resistance, a concern amongst consumers during the times we’re experiencing right now,” Mr Morrison said.
“It would be surprising if we did not see that.
“But I think, fundamentally, the structural position of the housing markets in Australia would tell a far more stronger tale in terms of their resilience,” he told reporters in Canberra.
“It would be presumptive, or a little premature is probably the better word, to be making medium or even short-term forecasts about the Australian property market at the moment.”
Yesterday’s data revealed the 11.6 per cent drop was the largest fall in the history of the series.
The value of new loan commitments for owner occupier housing fell 10.2 per cent, while investor housing fell 15.6 per cent. The number of owner occupier first home buyer loan commitments fell 9.3 per cent. Refinancing skyrocketed, however.
Read the full recount of those figures, along with the real estate and mortgage industries’ responses here: New home loans slump to their lowest number on record in May