The Australian property market has been turned on its head, with investor lending at a two year low, at the same time the number of first-home buyer loans continued to grow.
The latest mortgage lending data shows investor loans has softened a further 0.9 per cent in seasonally adjusted terms in April 2018 and now sits at $10.7 billion, the lowest level since January 2016, according to the Australian Bureau of Statistics.
Meanwhile, first-home buyers were the only segment of the market that continued to grow in the same period.
The number of first-home buyers loans grew to 17.6 per cent of all owner-occupier mortgages, an increase from 13.7 per cent in January 2016.
In the 12 months to April, the number of first-home buyer mortgages grew 30.7 per cent, from 6547 loans a year ago to 8557.
First home owner lending peaked in November 2017 with 11,110 loans written.
So what does this mean moving forward? First home owners need to tread easy in this soft market and not over capitalise, with lending and future purchases. Whilst investment loans are still harder to come by and banks continue to tighten their belts on lend ability, therefore put more money aside and continue save. Be smart with your purchases and savings, timing is everything.