Dwelling lending has come off of its recent peaks, but is still robust and along with today’s solid approvals for new houses shows that the property sector has not yet weakened significantly since the monetary tightening cycle began in May.
- The value of August new home loans fell 3.4% m/m, which was slightly softer than expected but not as weak as in July (-8.5%). New investor loans were down 4.8% and owner-occupier -2.7%.
- August was the third consecutive fall for all three series but the ABS noted that even with lending down more recently it remains elevated. Owner-occupier lending stands 36% above February 2020 (pre-Covid) and investor lending 70% higher.
Source: MNI - Market News, ABS