Housing Credit Continues To Grow

Home loan figures continue to climb. Reserve Bank data shows that in the past year housing credit for owner-occupiers grew at the fastest annual pace
since October 2016.

Owner-occupier housing credit grew by 0.81% in August, faster than the monthly average of 0.77% in the past two decades. Annual housing credit
increased by 8.4%.

While investors are back in the market their borrowings are not as substantial, increasing 0.23% in August to $670 billion.

The Australian Prudential Regulation Authority (APRA) has announced measures which may slow borrowing.

With increased borrowings comes higher building approvals with Australian Bureau of Statistics (ABS) figures showing a national increase of 6.8% in August.

ABS director of construction statistics Daniel Rossi says the August figures show demand for new housing remains strong, driven by stimulus measures, increased savings and the low cost of finance.