Housing credit expansion moderates from hot to warm

Housing credit expansion moderates from hot to warm

by 0 comments

Mortgage lending growth slowed dramatically in the last financial year, new statistics have revealed.

Housing finance for owner occupiers reached $195.9 billion in 2014-15 after growing 7.8 per cent over the year, according to the Australian Bureau of Statistics.

That was a significant drop on the 14.6 per cent growth recorded in 2013-14, although higher than the 4.7 per cent figure in 2012-13 and 6.1 per cent figure in 2011-12.

Nick Proud, executive director of residential at the Property Council of Australia, said although the owner-occupier market remains strong, the investor lending crackdown will start to impact on the number of homes that will proceed through to development.

“What brings developments to market is a good mix of investors and owner occupiers who can ensure that pre-sale commitments are met and projects go from planning to construction,” he said.

Master Builders Australia chief economist Peter Jones said the association would closely monitor the results of the investor crackdown.

“The resulting remix by the banks from investor to owner-occupied demand will become more apparent over the next few months,” he said.

“The authorities need to be careful as they attempt to avoid risks attached to rapid house price inflation, particularly in Sydney and Melbourne.”

[Related: RBA warns of more boom and more debt]

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Depends on the group
Do you have an industry update?