“Interesting analysis on the perils of an investor led housing recovery:“
Demand for new home loans fell for the first time this year, heightening concerns about the sustainability of the fragile and multi-paced housing recovery.
The ABS housing and finance data shows a drop in both the value and number of housing commitments for August.
Seasonally adjusted figures indicate that compared with July, overall mortgages fell by 3.9 per cent for owner-occupied housing, with home lending for established dwellings falling by 4.6 per cent and new dwellings falling by 4 per cent.
Somewhat worryingly, the proportion of new home lending to first home buyers has dropped a further 1 per cent to 13.7 per cent, suggesting that rising prices combined with low housing supply are working together to drive out first time buyers.
An Investor Led Recovery
Credit growth in a housing market is seen as a signal… Read More