Housing credit to a 60 month high
Of course, total annual housing credit growth of 7.5 per cent is materially lower than the levels seen in cycles past, but then the total stock of outstanding credit is significantly higher today, now closing in on $1.5 trillion. This debt sits against a total value of dwelling stock which is rapidly approaching $6 trillion.
Despite the strong result for housing credit, there has been some jiggery-pokery in the housing finance data lately, and we may not know for certain how the market is shaping up until the new year.
For this reason and others, we likely won't know until at least January how the housing market is truly shaping up for the calendar year ahead.
It seems that the Reserve may now cut interest rates in order to soothe the slowing economy without fear of unduly firing up the property investor cohort, with lending criteria having been tightened considerably.
Hence, expecting to see the cash rate on hold at 2 per cent with an easing bias. It will be a fascinating week ahead!