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The number of properties mortgaged is climbing however, values are increasing faster than outstanding debt

Earlier this week the Australian Bureau of Statistics (ABS) released its residential property prices indexes for the March 2017 quarter.  A valuable data set from the release relates to the value of dwelling stock and the number of residential dwellings.  Both of which have increased over the quarter.  When this data is paired with data […]

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The housing investment slowdown is upon us (for at least a while)

The latest housing finance and housing credit data confirm that the level of activity from investors in the housing market is slowing. Australian mortgage lenders have been rationing credit to the investor segment and lifting mortgage rates and these changes are starting to bite with investor demand now slowing.  It remains to be seen if […]

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Downturn refresher: what happens when prices start falling?

When we think about the housing market we tend to focus on when values rise but in the recent past values have fallen in each capital city; this week we look at the magnitude and duration of these falls in the past. Throughout the past 20 years it has been much more common for combined […]

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Investor demand and refinancing by owner occupiers continues to stall in April 2017

The latest housing data from the Australian Bureau of Statistics (ABS) shows that while lending to owner occupiers is fairly flat, demand from the investor segment has continued to stall.  When you dig deeper, the data shows that owner occupier demand is growing for new lending as refinancing stalls. The April 2017 housing finance data […]

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High LVR lending is easing up with a further slowdown expected

Data released by the Australian Prudential Regulation Authority (APRA) earlier this week has shown that high loan to value ratio (LVR) lending continues to fall indicating new buyers are in many instances using larger deposits.  The latest authorised deposit-taking institution (ADI) property exposures data for the March 2017 quarter revealed the ongoing trend as a […]

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Investor mortgage demand was petering out in February and March, expect this to continue over the coming months

According to the latest housing finance data release for March 2017 there was $33.2 billion in finance commitments over the month.  The monthly value of commitments increased by 0.9% to be  5.3% higher year-on-year.  While the value of commitments to investors has slowed over recent months, owner occupier demand lifted slightly in March 2017. The […]

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Investor lending slows in February before the APRA crackdown was announced

It seems that lenders were already scaling back their appetite for investment lending as early as January this year, with the value of housing finance commitments for investment purposes falling by almost 6% in February; the largest fall in lending for investment purposes since September 2015.  While this is only one month of data, it […]

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The mortgage lending landscape has changed substantially over the past week

On Friday of last week the banking regulator, the Australian Prudential Regulation Authority (APRA) wrote to all authorised deposit-taking institutions (ADIs) announcing further measures to reinforce sound residential mortgage lending practices.  Since then we have seen the CoreLogic home value index showing that capital city dwelling values are increasing at their fastest annual pace since […]

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Investors have historically outweighed first home buyers, but the spread in market participation has never been this wide

Over recent years the level of investor participation in the national housing market has hit historic high levels and at the same time, housing finance commitments to owner occupier first time buyers has shrunk.  As an example, January 2017 housing finance data shows that based on the total value of housing finance commitments, a record-low […]

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The investor surge continues at the expense of first home buyers

Housing finance data for January 2017 was released earlier today by the Australian Bureau of Statistics (ABS).  The data showed the over the month there was $33.9 billion in housing finance commitments which was 1.5% higher than the previous month.  The value of housing finance commitments in January 2017 was 11.0% higher than it was […]

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