On Friday, the Australian Bureau of Statistics (ABS) released housing finance commitments data for August, which registered a seasonally adjusted 4.3% decline with annual growth also falling sharply:
As regular readers know, the growth in new mortgage commitments has historically been correlated very strongly with dwelling value growth. The reason is straightforward: the overwhelming majority of buyers borrow to purchase a home. Therefore, when mortgage demand rises, so does property prices.
Below are a series of charts tracking the annual growth of new mortgage commitments by value against annual dwelling value growth nationally and across the main capital city markets.
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