Housing Finance Falls Further

12 October 2018

Tighter credit conditions are continuing to have an affect on the housing markets with the latest Housing Finance figures showing that totaling lending for Housing for August was down -3.1% on last month and -3.2% compared to the previous 12 month period with the rate of decline greater for owner occupiers down -4.3% on last month, and investors down -1.4% for the month. As the charts below show, lending to investors in the month equaled $10.10bn which is the lowest point since September 2013 and down 30% from the peak in April 2015 before the first round of credit tightening by APRA. Investment lending now accounts for just 41% of total lending. Total lending to investors over the past 12 months is now down -11.8% to $134bn compared to the previous 12 months. For Owner Occupiers lending conditions for the 6 months up to August were relatively flat, however the decline in lending in August is likely a reflection of the more widespread downturn in housing values and volumes across the market.