Housing Finance data should provide confidence

Today’s ABS Housing Finance data reflect steady housing finance commitments to owner occupiers and a 5 per cent fall for investment housing.

“Today’s data confirms the stronger lending standards that the Governor of the Reserve Bank spoke about only yesterday”, said Ken Morrison, Chief Executive of the Property Council of Australia.

“Lenders are being cautious and the system is working exactly as it should.

“This data should reassure everyone that lenders and borrowers are acting rationally.

“While there has been a lift in dwelling prices there is also significant new supply under way.

“Given Australia’s housing deficit the new supply is a good thing and is not the risk that some make it to be. These figures demonstrate that new home buyers are stepping into the market.

“The data demonstrates that owner-occupiers who are benefiting from the lowest interest rates as well as from a strong new supply of housing.”

Media contact:  Paul Ritchie |E pritchie@propertycouncil.com.au