AFG’s October data is out and records have tumbled:
AFG, Australia’s largest mortgage broker, processed over $4 billion in home loans last month – its biggest month ever, and the first time the company’s national 1,900 brokers have collectively broken through the $4 billion mark. The $4,057 million figure is 12% higher than the $3,624 million processed the month before, which was itself a record. The October 2013 figure is also 30% higher than that recorded by the company for October 2012, and 61% higher than for October 2011, showing how far the mortgage market, and broader economy, has recovered over the past two years. Across the nation there were significant variations in different markets. South Australia’s figures were 19% higher than the month before and Victoria’s 18.8%. Queensland and NSW occupied the middle ground with increases of 11.8% and 10.9% respectively, while WA’s volumes were up only 5% on September. The WA figure did come off a high base, and the relatively large number of first home buyers in the state was another reason why uplift was less dramatic than elsewhere.
Here are the tables, for loans:
Investors power on and FHBs are nowhere. And states:
Average loan sizes are growing in all of the eastern states now. Victoria is pouring it on and although its supply situation is awful it is chasing Sydney at a mere sprint versus the latter’s jet pack. Here’s the chart comparing AFG with ABS Housing Finance:
Boom! I will add that the RP Data mortgage index is also showing a big jump in Victorian approvals.
Now, a few significant caveats. AFG is taking market share over time so its figures are favourably distorted versus the broader mortgage market:
Also, AFG measures applications not approvals so its figures also exaggerate the level of activity, though not the trend.
Having said that, boom!
