Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 15 March 2017

Reflexivity in action!

Reflexivity

Rising prices beget more buyers?

It certainly seems that way.

New South Wales investor loans burned 49 per cent higher than a year earlier in January as investors chase Sydney property prices higher.

In Victoria, investor loans were up by 35 per cent, with Melbourne dwelling prices also rising. 

On the flip side, the value of investor loans in Western Australia was down by 16 per cent year-on-year. 


In Darwin and the Northern Territory, meanwhile, the value of investor loans has dropped to the lowest level in a decade.


Such can be the reflexive nature of markets.

Total lending pulls back

Overall, January wasn't a particularly strong month for total lending according to the Australian Bureau of Statistics (ABS), with a decline in commercial lending in the month. 


After a recent spike in November - a near record month - total lending pulled back quite sharply at the beginning of 2017.

In fact, the result for total lending at $67.6 billion was a 5-month low. 


Meanwhile, investors pile into Sydney and Melbourne, fearful of changes being made to legislation.