Housing finance figures for November contained good news for the First Home Buyer (FHB) segment of the market, with their share of owner occupier home loans rising to 18.3% which was the highest monthly result since October 2012. 

Investor lending continued to sink with the value of loans falling to $9.33 billion during the month – a decline of 4.5% on October and 23.4% down on 12 months earlier. The last time a smaller amount of investor lending was made was in June 2013. Amid the more restrictive credit conditions, investor loans have been rationed more severely by lenders compared with owner occupiers. At the same time, investor enthusiasm for housing has been dampened by the fact that house prices are falling in a number of markets and rental price growth is relatively muted by historic standards.


Shane Garrett

Chief Economist

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