This was slightly at odds with the 12 month trend, which showed the value rose 10.1% in the 12 months to November 2023, while the value rose 7.3%.
Overall there was just over $16.2 billion in owner occupier loans written in November.
The average home loan size was $608,000, while it was $602,000 in November 2022; it reached a recent low of $577,000 in March 2023.
This came as the average owner occupier mortgage rate spiked from 6.00% p.a. to 6.23% p.a. off the back of November's RBA rate rise.
As to if this is sustainable, Oxford Economics senior economist Maree Kilroy said the volume of new lending is likely to slow further in 2024.
"Units are expected to outpace houses as affordability pressures, migration patterns, and weak apartment completion volumes intensify competition in the city apartment markets," Ms Kilroy said.
Despite this, home values are expected to keep increasing at a steady pace, defying the common logic of RBA rate rises and lower lending volumes weighing on the sector.
NAB head of market economics Tapas Strickland said conditions are not "especially restrictive" to see a coupled pullback in lending and home values.
See Also: What's 2024 got in store for the property sector?
This is largely due to ongoing low listings, which will be led by Perth - the capital city flagged for some of the strongest growth in 2024 after lagging behind peers for much of the pandemic.
"While Sydney and Melbourne are expected to record relatively softer growth, Perth is well-equipped to lead the pack as the city develops a more sizeable dwelling stock deficiency," Ms Kilroy said.
ANZ senior economist Adelaide Timbrell said the modest rise in building approvals - up 1.6% over the month in November - was not enough to balance the equilibrium.
"We expect housing price growth of around 6% in 2024, reflecting strong auction clearance rates, limited listings and the sluggish flow of new residential building approvals and construction," Ms Timbrell said.
That said, the slight turnaround in lending volumes towards the end of the year - there was a 7.1% uptick in new home lending in October - was reflective of spring selling season and increased property turnover.
"The RBA’s 25 basis point November rate hike will have further reduced home borrower capacity. But sales volumes have increased, with strong population growth and more active foreign buyers supporting the market," CBA economist Stephen Wu said.
Photo by Nebular Group on Unsplash
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