Investors jump in
Housing credit growth has 0.56 per cent in August, according to RBA statistics, for the fastest monthly growth in almost three years.
This was mainly due to strong investor credit growth of 0.73 per cent, but I wouldn't be much surprised to see owner-occupier credit growth turning higher towards the end of the year as the first homebuyer deposit guarantee kicks into gear.
The housing credit impulse thus accelerated for a third consecutive month, suggesting rising housing prices ahead.
The wrap
Overall, while business credit growth has eased a little, mortgage demand is rising, while anecdotally many first homebuyers are looking to get into the market ahead of an anticipated rush in the final quarter of the year.
There have already been signs of more urgency among buyers in the lowest price quartile of the housing market.
Previously Treasury has dramatically under-estimated the impact of FBT exemptions on novated leases and the over-subscribed HomeBuilder stimulus measures respectively - hat tip Justin Fabo of Antipodean Macro - so it probably wouldn't be a surprise if the deposit guarantee sees a similarly enthusiastic take-up over the year ahead.
There may be a risk of negative equity for some first homebuyers down the track, though younger workers generally tend to find ways to make mortgage repayments. A more significant driver of mortgage defaults in recent times has been from property developers (while lenders have been more inclined to offer mortgage holidays to any struggling homeowners).
---
1. Download our property buying guide
Download our free property buying guide here.
You can also check out a few of our recent property purchases here.
Get in contact with us today if strategic property investment is your thing.
2. Subscribe to our Top 10 Podcasts for Investors
Listen in to our podcasts
The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.
And our popular Low Rates High Returns Show also remains available on Spotify.
3. Subscribe for my free daily blog
Subscribe for my free daily blog with more than 4 million hits here.
You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 15,300 followers.
By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.
My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - check out our free Buy Right podcast series here.
4. Work with me privately
For a limited time you can book in a free diagnosis call with me here, so book in a call today.
