According to the Australian Bureau of Statistics, there were 19,342 new home loan commitments made by investors nationwide in August 2024. This was up 15.0% from the same time last year.
The trend continued in New South Wales, where the number of new home loans for investors was up 18.7% to 5,552.
The investor market has been slowly rebounding over the last six months after dipping throughout much of 2023. In fact, the last time new loan commitments in NSW were consistently above 5,000 was in late 2021 and early 2022, when the cash rate was at a record low of 0.10%.
This rebound in the investor market may be in anticipation of a rate cut. “People think interest rates had peaked so, they want to enter the market expecting it will be cut in the next few months,” one buyer’s agent told the Australian Financial Review.
An interest rate cut appears to be on the horizon. The Commonwealth Bank predicts a cut before December of this year, while ANZ and Westpac believe we will see the first one in February. NAB recently moved their prediction out from February to May 2025.
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