Housing finance points straight down for prices

Monday 18 July 2016

With the release last week of the state investor finance data for May, it is an opportune time to once again plot the total value of housing finance commitments (excluding refinancings) as measured by the ABS against dwelling values as measured by Core-Logic RP Data.

First, below is the national picture, which shows finance approvals typically leading price growth:

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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.