Investor finance derailed
The Reserve Bank's Financial Aggregates data for October mirrored these trends closely, the net result being that housing credit growth rose to a fresh cyclical high of 7.5 per cent, although it does seem that the pace of increase is steadying.
In time, this will be seen to be a worthy step, since many markets had become far too top-heavy with investors. At the peak of the investor market, excluding refinancing, in New South Wales and Victoria investor loans had breached 60 and 50 per cent of the mortgage market respectively. Today the equivalent numbers are down to 50 and 40 percent and falling.