Credit impulse dampened further
More evidence of housing market activity slowing as prospective buyers wait to see how far the rate hiking cycle will go.
Housing credit growth has been down over the past few months, according to RBA figures.
The housing credit impulse confirms that year-on-year prices across the capital cities will inevitably be negative in the second half of this year.
Overall credit growth and broad money growth are rolling over, with a softer result in July.
The slowdown in the property market has mainly been driven by homebuyers, but investors are also becoming more cautious.
CoreLogic released its monthly housing price index, which showed property prices as being down -3.4 per cent from their peak.
The downturn has been largely driven by detached houses in Sydney which have recorded a decline of -6.7 per cent over the past quarter.
Brisbane recorded a decline in house prices, but unit prices have been increasing (which we have seen first hand on the ground, driven by relative affordability).
Rents continued to rise, up by another 0.8 per cent in August, which have helped gross rental yields across the capital cities to increase from record lows of 2.96 per cent to 3.29 per cent to date.
