Home loan approvals up in October as first home buyers weigh in

Lending for housing is on the rise, new data from the ABS reveals. Statistics released today show lending for housing rose 5.4 percent seasonally adjusted in October, up from an increase of 0.6 percent in September.

Owner occupiers saw the highest increase over the month, up 5.6 percent compared with loan commitments for investors at 5 percent. The stronger results may reflect the pause in interest rates over October.

The RBA declined to increase the cash rate at its board meeting in October, giving those entering the market confidence that rates may have peaked. However, at its November meeting, the board announced interest rates would increase a further 0.25 percent, bringing the rate up to 4.35 percent.

The number of first home buyers gaining approval for new loans was up 6.2 percent in October, compared with 5.0 percent for investors, seasonally adjusted.

In terms of the differences between owner occupiers and investors, there’s a clearer contrast over the past 12 months, with loan commitments for investors up 12.1 percent compared with a much more modest 1.4 percent for owner occupiers. Among owner occupiers, the value of new home loans commitments by first home buyers rose 11.8 percent over the 12 months.

Construction of new dwellings was up 9.1 percent over the month, although it is still -19.5 percent down over the 12 months to October 2023. Purchase of newly erected dwellings was up 1.7 percent, compared with -5.3 percent over 12 months and purchase of existing dwellings

One of the priciest homes for sale in the Los Angeles area just got $40 million knocked off its listing price.

The Beverly Hills megamansion is now listed for $135 million, the highest asking price on the open market in Los Angeles County.

One other property , in Bel-Air, is also asking $135 million after a similar-sized price cut last month.

“It’s time (for the sellers) to move to the next chapter…They’re ready to pass the torch,” said Kurt Rappaport of Westside Estate Agency, who shares the listing with his colleague Stephen Shapiro.

The home was built for Tony Pritzker—heir to the Hyatt Hotel fortune and brother of Illinois Gov. JB Pritzker—and Jeanne Pritzker, who listed the home for sale in October 2024 for $195 million after settling their divorce, The Wall Street Journal reported at the time. That price was lowered to $175 million in April.

The estate is made up of multiple parcels, and, under an LLC, they bought at least some underlying property in 2005 for about $14.7 million, according to records accessed via PropertyShark.

The Pritzkers hired architect Ed Tuttle to design their contemporary mansion, made of steel, glass and limestone and completed in 2011. At 50,000 square feet, it’s one of the largest homes in the U.S., and nearly as big as the White House.

It stands on a 6-acre promontory—an unusually large lot size for Beverly Hills—allowing for an unobstructed view that stretches across Los Angeles all the way to the ocean.

“It’s one of the best and largest view promontories in Los Angeles,” Rappaport said. “The architecture design and scale of the property are irreplaceable.”

The 16-bedroom, 27-bathroom home is filled with all the expected high-end amenities, including a theater, a game room, a bowling alley, a wellness centre, a gym and a wine cellar, according to the listing.

There’s also a security room, 18 fireplaces, solar panels, and a heating and cooling system powered by geothermal technology.

On the grounds, there’s a two-story, two-bedroom guest house; parking for up to 100 cars; a green marble infinity pool and hot tub; an outdoor kitchen; and a lighted tennis court with a pavilion, according to the listing.

The Pritzkers couldn’t be reached for comment.

Home loan approvals up in October as first home buyers weigh in

The lending patterns over the month follow on from the RBA’s decision to pause rates in October

The megamansion was built for Tony Pritzker, heir to the Hyatt Hotel fortune and brother of Illinois Gov. JB Pritzker.