Finance up
Housing finance increased another 2 per cent in October 2019 to be up by more than 15 per cent since May 2019.
The resurgence has been overwhelmingly driven by homebuyers to date, with the investor share of housing lending hitting the lowest level since 2009.
Having stayed out of the market en masse before the election, the homebuyers are coming back in droves...especially in New South Wales, and Victoria.
First homebuyers have received plenty of conflicting advice in the latter half of this year.
But they seem to be voting with their bidding paddles regardless, with the number of monthly commitments now rising to the highest level since the tail end of the Rudd stimulus package in January 2010.
But they seem to be voting with their bidding paddles regardless, with the number of monthly commitments now rising to the highest level since the tail end of the Rudd stimulus package in January 2010.
The seasonally adjusted figures reported more than 3,000 first homebuyer commitments in Victoria, while in Queensland FHB activity hit the highest level since 2012.
First homebuyers now account for 30 per cent of owner-occupier commitments.
Contrary to the tenor of what's often reported, there was a significant jump in the demand for new housing in October, suggesting that a level of confidence may be slowly returning to this sector.
The wrap
Overall, there has been a strong rebound in housing finance since May, to date driven mainly by homebuyers, while investor finance remains well down year-on-year.
CoreLogic’s price figures turned on May 19 - the day after the election.
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The Reserve Bank's December Meeting Minutes implied that the Board stands ready to cut interest rates in February, if required.
