Australian new home loan approvals fall 1.1% in April
- Australia’s new home-loan approvals fell 1.1% in April as compared to March.
- The Bureau of Statistics attributed the decline to lower house prices and a tight mortgage lending market.
A study by CoreLogic recently confirmed that Australian house prices have fallen by 8.2% since their September 2017 peak making this the worst ever recorded housing downturn.
However, the future outlook for the housing industry looks promising, given that the Reserve Bank of Australia slashed rates on Tuesday.
This was the first rate cut by the RBA in three years and is likely to stimulate the weak Australian housing market. The recent election win by the centre-right coalition is also good for the housing sector.