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Today’s housing finance data from the Australian Bureau of Statistics (ABS) confirmed that the mortgage market is unequivocally booming, with total commitments (excluding refinancings) surging by 8.6% in December to be up 31.2% year-on-year:
Both owner-occupied (8.7% growth) and investor (8.2%) mortgages grew strongly in December. However, owner-occupied growth (38.9%) is far higher than investor growth (10.9%) over the year.
First home buyers (FHB) are piling into the property market at an astonishing rate, with FHB mortgage growth of 14.1% recorded in December and 60.6% growth recorded year-on-year:
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Tomorrow I’ll plot mortgage growth against Australia’s dwelling values across the various jurisdictions.
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.
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