Impulse turning
Credit growth came in at 0.4 per cent for August, and 5.1 per cent over the year.
Housing credit growth was steady at 0.3 per cent, again, as it has been of late.
Over the year, housing credit growth was 4.3 per cent (well below the 7.6 per cent seen this time last year).
Over the year total credit growth in the economy continued to decelerate, now down to 5.1 per cent, having been as high as 8.6 per cent a year ago.
Investor credit in the housing market has been anemic for the past year, once again recording net growth of only 0.2 per cent in August.
At a time of record high population growth, this means more chronic pressure on rental markets.
Eventually lending standards will need to be relaxed to get investment and construction happening again, but this probably won't happen until 2024 when inflation is definitively under control.
The housing credit impulse is gradually turning positive, but in fact housing prices have recovered much more quickly that might've reasonably been expected, due to record high population growth and very low stock listings.
Overall, this was pretty much as expected, with higher interest rates doing their thing.
