Impulse improves
Housing credit growth slowed in October, but less sharply, to 7.2 per cent.
The rate of change or 'credit impulse' seems to suggest that the worst of the housing price declines are now done with (but a lot depends on the outlook for interest rate changes, so let's see).
Investor credit growth is now slowing, which means Australia is heading squarely for a chronic rental shortage.
Business credit kept ticking along in October, but credit growth is overall likely to decline from here.
The rentals market looks to be in dire straits, not helped by extremely tight lending assessment criteria.
Anecdotally, landlords are increasingly looking to increase rents on lease renewals at 10 to 20 per cent higher than a year earlier.
