By Craig MacKenzie, executive general manager, commercial at CoreLogic Asia (RP Data)There are signs of a material rise in new lending levels in the home loan sector, with volumes in January 2015 nine per cent higher than in the same month in 2014.
February has also started out extremely well, with platform volumes jumping 25 per cent in one day, to now match average daily volumes recorded in December 2014.
CoreLogic RP Data's propriety mortgage valuation platforms - the source for this data - provides one of the most accurate and timely leading indicators of the full spectrum of mortgage market activity, facilitating around 95 per cent of all residential property mortgage valuations.
The platform data for January 2015 shows that, on average, 4150 reports were completed for each working day in January. Although this represented a drop of around 17 per cent over December 2014 volumes, this figure was nine per cent higher than the corresponding number in January 2014.
CoreLogic RP Data's platforms show that ten per cent year-on-year platform volume growth has been consistent over the last quarter of 2014, though at a lower level than the year on year growth experienced in the first half of 2014, when it was at around 25 per cent.
This aligns closely to the point of peak capital value growth in this housing market price cycle, which occurred in April 2014 (11 per cent across the combined capital cities) and which has been trending lower since (now approximately eight per cent across the combined capital cities).
This year on year growth is being driven by a combination of purchase, refinance and construction-related activity.
Pleasingly, MIP (mortgagees in possession) related valuation activity has not increased year on year, with around 250 to 300 MIP related valuation activity events completed each month across the platforms.
From a geographical perspective, all cities and regions of Australia have experienced year on year growth other than:
- Perth (down between five per cent and ten per cent compared to 2013)
- Regional Queensland and regional Western Australia.
Recent markets to soften in terms of platform volumes include Darwin and Townsville, whilst both Hobart and Canberra have witnessed a mini resurgence in platform volumes over the last quarter of 2014.