Credit impulse up
Credit growth was a solid 0.5 per cent in September 2024, and increased to 5.8 per cent over the year, according to the latest Financial Aggregates from the Reserve Bank of Australia.
Housing credit growth picked up to 5.1 per cent over the year, the fastest increase since April 2023.
In particular, investor credit growth of 0.5 per cent over the month was the quickest increase since June 2022, a clear sign that investors are getting back into the market ahead of anticipated interest rate cuts.
The new supply from the spring selling season has cooled housing price growth - indeed, it's been negative in Melbourne, Canberra, and Hobart - yet the housing credit impulse has picked up some speed.
A combination of a dwelling shortage and lower mortgage rates in 2025 should be net bullish for the housing market, overall, with some divergence in performance depending on local market conditions.
