Since 2022, there has been almost stable growth in loan lodgment volumes, employment opportunities, and interest rates. However, lodgment volumes increased by 18% in the first half of the year and by 4% in September compared to the same time last year, which is over $49.4 billion. This led to increased investment and home-buying activities in the housing market.
Among all the cities, Western Australia and South Australia performed well with the highest number, while Queensland was the only city with low lodgment volumes, which contributed to the low investment opportunities there. This scenario has also contributed to the largest average national loan size at $674,284 but with a low loan-to-value ratio.
It means that if the investors invest in Western Australia and South Australia, it will bring higher returns for them. On the other hand, New South Wales remains the most costly state for homebuyers, with a high average mortgage size of $804,629. Also in 2017, the highest number of loan applications was registered but since the third quarter of 2022, refinancing activity has remained low. This depicts a fluctuating refinancing trend with a low number of loan applications.
Parallelly, as of 30th January 2025, over 12.6 million individuals have applied for tax return lodgments for 2024, which is 3% higher than last year. This indicates that there will be more economic activity in the housing market. Among these individuals, 5.8 million people were self-preparers, 6.7 million were tax agents and over 103,000 were push returns.
With all this, it can be predicted that in 2025, we can expect more investment activity across the country, except in New South Wales and Queensland. This is because these cities are not offering suitable home prices, one was found to be expensive, while the other recorded low lodgments volumes. Also, as per the average growth in national loan size, we may see persistent growth in it, and there is a chance that homebuyers may take more loans to purchase expensive properties. However, refinancing activity may follow stable growth with a slight increase subject to better loan terms and conditions.
For more such industry insights, visit our website at Nfinity Financials or contact us at 1300 GET LOAN (1300 438 562) or 0456 456 267.
