Housing impulse beyond peak
Credit growth in the Aussie economy was 0.66 per cent in April, down slightly from 0.73 per cent in March, but still up 8 per cent over the year, according to the RBA's Financial Aggregates.
The Reserve Bank's Sarah Hunter noted today that it's expected that the economy will now go into something of a downturn (this appears highly likely given the Budget tax grab combined with several interest rate hikes).
Housing credit growth was steady in April at 0.64 per cent, to be 7½ per cent higher over the year.
It was another strong month for investor credit growth at 0.93 per cent, leading to double-digit growth for investment over the year to April.
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The housing credit impulse was thus steady in April, but was also below the peak of December 2025.
The wrap
Overall, housing price growth will clearly slow over the year ahead as interest rate hikes and tax changes bite.
You can clearly see the appetite for property investment in these charts given high population growth, low unemployment, and record low rental vacancy rates.
However, the changes to capital gains tax and especially negative gearing legislation is leading to a seismic shift in approach for investors, who are tilting towards new builds, higher-yielding residential or commercial properties, and self-managed super fund property investment...or simply focussing more on building equity through their principal place of residence, which remains capital gains tax free.
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