New home finance confirms construction peak

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By Leith van Onselen

Today’s housing finance data for July showed further signs that the dwelling construction cycle is approaching its peak, with the number of commitments for construction and new dwellings coming in flat over the month but falling by a combined 8.5% over the year (see below charts).

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Looking at at the state-by-state breakdown, which is presented below on a rolling annual basis since it is not seasonally adjusted, shows that the uptrend in new home finance commitments has given away across all major jurisdictions, except New South Wales where it is still rising slowly (see next chart).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.