CoreLogic’s research analyst, Cameron Kusher, has released some interesting analysis of last week’s ABS housing finance data, showing that NSW (Sydney) and VIC (Melbourne) are leading the strong rebound, which is reflected by their rising dwelling values:
The ABS results confirmed that housing finance commitments data has shown a sharp rise with the uplift in commitments matching the turnaround in dwelling values seen since mid-May. According to CoreLogic research analyst Cameron Kusher, “this result has also mirrored the jump in auction clearance rates seen over the same period”…
As highlighted (refer adjacent 2nd chart), the components of housing finance looks at commitments in NSW where a lift in the value of lending was recorded over recent months. Owner-occupier lending to nonFHB in July was the highest it has been since November 2018 and was 14.3% higher over the month. Owneroccupier FHB lending was 33.6% higher over the month and the highest since October 2009. Investor lending rose to its highest monthly value since December 2018 and was 4.8% higher over the month.
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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.
