“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.
Credit growth in a housing market is seen as a signal… Read More
