Tasmanian home lending is rebounding from its coronavirus crash and a bank chief believes government stimulus measures are helping.
Housing finance commitments for owner occupiers in the state recovered from 620 in May to 674 in June in original terms, the Australian Bureau of Statistics estimated.
They topped 700 for the last six months of 2019 before plunging from 772 in March – just before the pandemic really struck the state – to 689 in April and 620 in May.
“We’re seeing the stimulus measures coming through and they would be influencing this results,” Bank of us chief executive Paul Ranson said on Wednesday.
“We have this strategic partnership with (residential builder) Wilson Homes and they’ve had huge inquiries.”
Mr Ranson said the effects of the stimulus would flow through the system for some months.
He said he expected some “reasonably good numbers” in Tasmanian home lending in the next six months or so.
“One of the factors that will influence how well that goes is the availability of land, and the availability of builders,” Mr Ranson said.
“Land availability is probably better in the North and North-West than in the South from what we’re hearing.”
Mr Ranson said there was some uncertainty about the second half of the current financial year, following the Christmas and New Year period, due to the coronavirus pandemic and how the recovery from it would progress.
“I’m reasonably optimistic,” he said.
“Market values (in Tasmania) are still holding up reasonably well.”