Tasmanian mortgage lending weakened for a seventh straight month in May, but the decline appeared to be slowing.
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The Australian Bureau of Statistics estimated the state had 1015 housing finance commitments for owner occupation in May in trend terms.
That was down by just one from April, but significantly weaker than the 1108 estimated for October last year.
Separate ABS figures showed housing approvals by Tasmanian councils had dipped in recent months after a run of strong growth, while housing construction starts were at their strongest level in nine years.
Signs of a potential upturn in home lending have emerged since May.
The Real Estate Institute of Tasmania recently reported a surge in property market activity after the May 18 federal election.
The Housing Industry Association said federal tax cuts and interest rate cuts would help make housing more affordable.
This tax cut will add further to household income and provide a boost to the new home market.
- Graham Wolfe
"This tax cut will add further to household income and provide a boost to the new home market," HIA managing director Graham Wolfe said.
"Whether the money goes towards a mortgage or a deposit on a house, it provides a real incentive for mums and dads to start looking at getting into their first home."
The HIA said housing became more affordable in all eight capital cities in the June quarter, including by 2.2 per cent in Hobart, and national housing affordability was at its best since 1999.
Senior economist Geordan Murray said: "Average earnings have increased by 113 per cent over the 20 years to 2019, while the median home price has increased by 228 per cent, but the lower interest rates have kept the cost of servicing a loan the same."
Mr Murray expected measures including the tax cuts, the easing of regulatory restrictions on mortgage lending and the federal government's First Home Loan Deposit Scheme would help first home buyers enter the market.