Home buyers across Australia have returned from the annual summer break with a vengeance, according to the latest data from mortgage financier AFG.
AFG says property buyers returned to the market in their droves in February in a show of confidence in the property sector.
The AFG Mortgage Index shows the company sold 7,110 mortgages, worth over $2 billion in February - a 27 per cent increase on January sales.
"We always expect a bit of bounce in the February figures, after people come back from their Christmas holidays," AFG executive director Malcolm Watkins said.
"But what we're seeing this year is of greater significance, especially given the subdued sentiment last year towards property in eastern states.
"The figures for New South Wales and Victoria in particular provides more evidence that confidence is starting to return to the property sector."
In annual terms, the number of mortgages sold in New South Wales grew 20 per cent, with Queensland up 13 per cent, and Victoria up eight per cent.
The number of mortgages sold across Australia was 14 per cent higher in February 2006 compared to the same month a year ago.
The data supports recent auction clearance from around the country, with Sydney last week recording the second consecutive weekend of healthy auction results.
The auction clearance rate in Sydney hit a two-year high of 63 per cent two weeks ago and reached 58.7 per cent last weekend, according to Australian Property Monitors figures.
This compares to 80 per cent clearance rates in Sydney at the height of the property boom in April 2002 and the 33 per cent in April 2004 as the market fell into a heap.
Melbourne and Adelaide have also recorded encouraging results over the past fortnight.
The AFG index showed that 28 per cent of all new mortgages were sold to property investors in February, as opposed to owner occupiers.
This is up slightly compared to 24 per cent a year ago.
Property investment continues to peak in Western Australia where just over 38 per cent of all new mortgages are for investment properties.
AFG is Australia's largest mortgage broker and has 8.2 per cent of the national market.
