The Australian property market is constantly changing, something that's no surprise given the significant growth of the country. Now, a new release has pointed to a potentially significant change.
Property investors in Adelaide, as well as other regions across the country, will be tuned into fluctuations in the housing market, especially when it comes to lending activity. The Australian Bureau of Statistics has shown in new figures that flat lending activity for housing suggests heat is leaving the market.
Following this announcement, the Real Estate Institute of Australia came forward, explaining that the figures for May show that the number of owner-occupied finance commitments fell by a total of 0.2 per cent. It's quite a significant change, as it follows increases right through to March of this year. However, there is good news for those involved in Adelaide property.
REIA President Neville Sanders said that only South Australia, the ACT and the Northern Territory were excluded from these decreases. However, he went on to explain that in trend terms, the number of new dwelling purchase commitments increased by a total of 1.1 per cent. The value of investment housing commitments also increased by a total of 1.1 per cent.
"The lending figures indicate a market that is moderating with May 2015 being the fourteenth consecutive month of modest drops in lending levels if refinancing is excluded," he explained.
"The moderating housing lending suggest any concerns of an over heating property market should be laid to rest and also allay fears of an imminent bubble," concluded Mr Sanders.
If you'd like to find out more about the property market in Adelaide, and opportunities for investments and purchases, get in touch with Ray White Adelaide today.