Personal Loans Australia :: News
SHARE

Share this news item!

Why Homebuyer Borrowing Plunged in April Despite Strong Housing Demand

Why Homebuyer Borrowing Plunged in April Despite Strong Housing Demand

Why Homebuyer Borrowing Plunged in April Despite Strong Housing Demand?w=400
The lending market experienced yet another slump in April as new home commitments continued to decline due to higher interest rates and suppressed demand for housing.
According to research, home loan borrowers decreased by 2.9% monthly, following a 5.3% increase in housing-related borrowing in March.
The value of owner-occupier lending declined by 3.8%, while investor borrowing dropped a small 0.9%, with the total housing lending still down by 25.8% in comparison to how it performed last year.

Market Observations

Senior economist at Oxford Economics Australia, Maree Kilroy, noted that the reduction in new home listings has led to a decreased supply of real estate and a return to price growth in markets such as Sydney, Melbourne, and Perth. However, she warns there is no certainty that price growth will continue throughout 2023. Kilroy points out that it is too soon to rule out the impact of rising interest rates on at-risk borrowers and their potential to affect property prices on the back half of 2023.

The Struggling Home Building Sector

The lending slump has also affected the home building sector, with a sharp decrease in loans to construct dwellings. In April, only 2,546 loans were approved, marking a historical low. The current demand for housing seems to be outstripping supply, and there is limited development in the sector to make up for the deficiency.

Final Thoughts

Overall, the decrease in homebuyers borrowing in April is a reminder of the impact interest rates and supply can have on the demand for housing. While we are witnessing price growth in some markets, we cannot ignore the struggles of the home building sector and at-risk borrowers. The future remains uncertain, and it will be interesting to see how the market adjusts in the coming months.

Published:Saturday, 3rd Jun 2023
Source: Paige Estritori

Share this news item:

Finance News

Uncovering the Impact of Unsolicited Solar Sales on Consumers Uncovering the Impact of Unsolicited Solar Sales on Consumers
04 Jul 2025: Paige Estritori

In a concerning revelation, Australian retiree Christine Hirchfield shares her ordeal with an unsolicited solar installation that turned into a financial nightmare. Despite her initial enthusiasm for cheaper energy bills and a greener home, the project remains incomplete more than a year later. Consumer groups are now advocating for a nationwide prohibition on deceptive sales practices that target vulnerable consumers like Ms Hirchfield. - read more
Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge
03 Jul 2025: Paige Estritori

Australian online retail sales experienced a modest rise in May, as consumers continued to invest in fashion, games, and toys. According to the latest figures from the National Australia Bank, there was a 0.7% increase in online sales for the month, compared to a 1.1% growth in April. Over the past year, Australians have spent approximately $63 billion on online retail purchases. - read more
Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers
03 Jul 2025: Paige Estritori

The starting days of the new financial year bring significant changes for Australian workers, particularly those on minimum wage. As of Tuesday, the minimum wage will rise by 3.5 per cent, increasing hourly earnings to $24.95, or $948 weekly. This adjustment also affects award wages and comes as a response to rising living costs, outpacing current inflation rates. - read more


Personal Loans Articles

A Credit-Savvy Approach to Loan Comparison: What Every Australian Borrower Needs to Know A Credit-Savvy Approach to Loan Comparison: What Every Australian Borrower Needs to Know
Welcome to your essential guide on how to navigate the complex world of personal loans in Australia. Whether you're seeking to finance a major purchase, consolidate debt, or cover unexpected costs, understanding the nuts and bolts of personal loans is crucial. In this conversation, we'll shed light on why being credit-savvy is not just smart, but necessary for anyone considering a loan. - read more
Mastering Money Management: The Essentials of Personal Budgeting Mastering Money Management: The Essentials of Personal Budgeting
Embarking on a journey towards financial stability begins with the mastery of personal budgeting. It's the cornerstone of sound money management, where every dollar is allocated purposefully, paving the way for a future free from the shackles of financial stress. In this all-important first step, individuals learn the fine art of balancing their earnings with their expenditures, a fundamental skill for anyone looking to navigate their finances with confidence. - read more
Essential Steps to Take Before Applying for a Loan Essential Steps to Take Before Applying for a Loan
Before considering a loan application, it's crucial to have a clear understanding of your current financial position. Start by noting down all sources of income, including salary, any additional earnings, or government benefits. This will give you a comprehensive view of your financial inflows. - read more
The Ultimate Guide to Maintaining a Healthy Credit Score The Ultimate Guide to Maintaining a Healthy Credit Score
Welcome to our ultimate guide on maintaining a healthy credit score. Whether you're just starting your credit journey or you're an experienced borrower, understanding how to keep your score high is crucial. - read more
Top Mistakes to Avoid When Applying for a Loan Top Mistakes to Avoid When Applying for a Loan
Applying for a loan can be a daunting process, filled with numerous requirements and potential pitfalls. However, avoiding mistakes is crucial to boost your chances of approval and secure the best possible terms. Making errors during your application can lead to unnecessary delays, higher interest rates, or even denial. - read more
Effective Credit Repair: Long-Term Strategies for Sustained Improvement Effective Credit Repair: Long-Term Strategies for Sustained Improvement
Maintaining a good credit score is crucial for financial health. In Australia, a solid credit score can unlock better interest rates, higher credit limits, and improve your chances of loan approval. - read more


Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Escrow:
An arrangement in which a third party temporarily holds money or property until a particular condition has been met.