New home loan commitments in Australia decreased slightly in May, with the total value falling 1.7% to $28.8 billion, according to the Australian Bureau of Statistics.

Investor loans dropped 1.3% to $10.7 billion, while owner-occupier loans, excluding first home buyers, fell 1.6% to $12.9 billion.

First home buyer loans declined 2.9% to $5.2 billion. Over the past year, new home loan values have increased by 18%.

Since May 2023, new investor loans have increased in most states, notably in New South Wales (up 24.8%), Queensland (up 48.2%), and Western Australia (up 73.9%).

Queensland reached a record high of $2.4 billion in investor loans in May, surpassing Victoria for the third consecutive month.

Since May 2023, the average loan size for investors in Queensland has risen 14.3% to $580,000, while Victoria saw a 3.2% decrease to $566,000.

In total fixed-term personal finance, new loan commitments decreased 0.7% to $2.6 billion in May but were 12.7% higher year-on-year. Lending for road vehicle purchases rose 0.8% during the month.