Mortgage demand in Western Australia climbed by almost eight percent in the first quarter, another sign that Australia’s home prices are rebounding.
Latest data shows that mortgage inquiries edged up 1.5 percent last month, the first annual increase since the global financial crisis started in 2008.
“Turning points in mortgage inquiries usually occur one to three quarters ahead of turning points in house prices,” said Angus Luffman, Head of Consumer Risk for commercial and consumer data provider Veda. “This is a trend to watch, particularly if you are hoping for a future pick-up in house prices.”
Meanwhile, Luffman noted that most Australians were saving rather than spending during the period after the global economic crisis, and the result showed that “consumers are still cautious about taking on credit”.
He added that weak credit demand indicated an increase in debit card usage and the implementation of responsible lending laws last year, which added more steps to the application process.
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