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Loan data confirm housing in doldrums
The May worth of lending for housing, to investors and homebuyers combined, was $20.193 billion, under one per cent over the average for the preceding 2 yrs.
In other words, it’s a lot of same.
It would be simple to conclude that the rate of interest cuts from the Reserve Bank of Australia (RBA), bringing standard variable mortgage loan rates down by three quarters of a percentage point since late this past year, have had no effect.
But things might have been decidedly worse even without the the rate cuts.
The housing loans figures give some understanding of demand for new homes.
Mortgage loans slated for newly built or yet-to-be-built dwellings, coupled with loans to investors recognized as for housing construction, totalled $2.33 billion in May.
Which was 11 per cent less than in April, almost completely offsetting the 14 percent jump between March and April.
Also it was five percent lower than the average from the preceding two years – actually it was lower than the typical for any preceding period of time up to and including eight.
The basic principles are gradually submitting favour of housing.
Rents are rising, household incomes are rising, vacancy rates are mainly low, and housing prices happen to be falling in real terms.
However these lending figures suggest quite strongly the May blip up in building approvals reported by ABS a week ago will turn out to be a flash within the pan rather than the long-awaited light after the tunnel.
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