Investor exit
Housing credit growth was steady at 0.36 per cent in September, roughly in line with the same as we've seen all year.
Similarly, investor credit growth remained very anemic at 0.25 per cent, essentially the same as we've seen throughout 2023.
There's little respite ahead for the rental market, then, as on a net basis more investors are still leaving the market than entering it, sending rental vacancies to all-time lows.
The housing price rebound has also far outpaced what might've been expected, due to the chronic shortage of stock across most of the capital cities.
For example, we've been seeing units in Brisbane selling quickly, and at rising prices of late.
Overall, credit growth was solid in the month, but the annual growth continued to ease back to 25-month lows at 4.9 per cent.
The wrap
There's been a surprisingly sharp rebound in housing prices - and an even sharper rebound in rents - but this hasn't much been driven by housing credit growth, which has been flat all year.
Instead, the capital cities are facing a significant shortage of dwellings, a dynamic which looks set to worsen, particularly given the threat of further interest rate increases.
Economists forecast a 7 per cent increase in housing prices across FY2024 - don't forget, though, that prices have already moved some way higher over the first 4 months of the financial year.
The AFR reported that Commonwealth Bank's loan book shrank for three consecutive months for the first time in decades, suggesting that there will be some jostling for market share in 2024.
---
In other news, CoreLogic reported new record low vacancy rates across the capital cities, despite the relatively soft rental markets in Canberra, Darwin, and Hobart.
---
P.S. Whenever you’re ready…here are 4 ways I can help you manage your own money and go next level wealth:
- Boom or Bust in 2023 – 20 minute online workshop for investors
Register for my next free online training - Boom or Bust? How to change your investment plan for 2023 - book in here
You also download a free copy of my e-book The Only 6 Ways to Become Wealthy here.
- Subscribe to our Top 10 Podcasts for Investors
Listen in to our podcasts
The Australian Property Podcast is one of Australia's biggest business podcasts.
And our enormously popular Low Rates High Returns Show is also available on Spotify.
- Subscribe for my free daily blog
Subscribe for my free daily blog with well over 3.4 million hits here.
You can also catch up with me daily on Twitter here, where I'm active daily and have over 13,000 followers.
- Work with me privately
For a limited time you can book in a free diagnosis call with me here.
