Why Homebuyer Borrowing Plunged in April Despite Strong Housing Demand

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Market Observations

Senior economist at Oxford Economics Australia, Maree Kilroy, noted that the reduction in new home listings has led to a decreased supply of real estate and a return to price growth in markets such as Sydney, Melbourne, and Perth. However, she warns there is no certainty that price growth will continue throughout 2023. Kilroy points out that it is too soon to rule out the impact of rising interest rates on at-risk borrowers and their potential to affect property prices on the back half of 2023.

The Struggling Home Building Sector

The lending slump has also affected the home building sector, with a sharp decrease in loans to construct dwellings. In April, only 2,546 loans were approved, marking a historical low. The current demand for housing seems to be outstripping supply, and there is limited development in the sector to make up for the deficiency.

Final Thoughts

Overall, the decrease in homebuyers borrowing in April is a reminder of the impact interest rates and supply can have on the demand for housing. While we are witnessing price growth in some markets, we cannot ignore the struggles of the home building sector and at-risk borrowers. The future remains uncertain, and it will be interesting to see how the market adjusts in the coming months.

Published:Saturday, 3rd Jun 2023
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Hotter Inflation Puts Car Loan Budgets Back in Focus

29 Oct 2026: Paige Estritori

Australia’s latest inflation data has put car loan budgeting back under pressure, with the Australian Bureau of Statistics reporting on 28 October 2026 that annual CPI rose to 4.3% in September and trimmed mean inflation lifted to 3.6%. Coming after the Reserve Bank of Australia raised the cash rate target to 4.60% on 29 September, the figures give vehicle buyers another reason to plan around uncertain borrowing costs rather than assume cheaper finance is just around the corner. - read more

Green Car Loan Deals Are Growing, But the Fine Print Still Matters

17 Sep 2026: Paige Estritori

Green car finance is becoming a more visible part of Australia’s car loan market, with lenders continuing to promote discounted rates for eligible electric, hybrid and other lower-emission vehicles. For buyers weighing up a new EV, plug-in hybrid or fuel-efficient model, the headline appeal is obvious: a lower rate can reduce the cost of borrowing and may make a higher purchase price feel more manageable. - read more

Why Sharper New-Car Offers Still Need a Loan Check

03 Sep 2026: Paige Estritori

Australia’s new-car market is showing more signs of competition, with recent industry updates pointing to sharper drive-away offers, run-out campaigns and finance-led promotions across selected brands. For buyers, that can make the showroom feel more attractive than it did during the tight-supply years, when wait times and limited stock gave sellers more pricing power. - read more

Softer Used-Car Prices Could Shift Finance Decisions

27 Aug 2026: Paige Estritori

Australia's used-car market appears to be moving into a more balanced phase, with recent industry updates pointing to improved vehicle availability and less pressure on prices across some mainstream segments. That is welcome news for buyers who spent the past few years dealing with limited stock, long new-car wait times and unusually firm second-hand values. - read more

What the Latest RBA Rate Hold Means for Car Buyers

13 Aug 2026: Paige Estritori

The Reserve Bank of Australia's latest decision to leave the cash rate unchanged keeps car buyers in a familiar holding pattern: borrowing costs are not rising sharply, but they are not easing quickly either. For households planning a new or used vehicle purchase, that means the focus should remain on preparation, comparison and affordability rather than waiting for a dramatic rate shift. - read more

Click for more Finance News