PHOTO: CoreLogic
| By Eliza Owen, Head of Research Australia |
| Thursday’s lending indicator data from the ABS shows the value of new finance commitments for the purchase of dwellings fell by a record 11.6% over May 2020. This is the largest single monthly drop in the 18 year series. In seasonally adjusted terms, it represents a $2.2 billion monthly fall in the value of housing finance, and is $2.0 billion below the decade average level of lending. But CoreLogic data suggests that the June results could show a partial recovery. Can CoreLogic sales data tell us what will happen to the housing finance data? The chart below shows the monthly value of new finance for housing from the ABS, against the number of property transactions estimated by CoreLogic. The two metrics have moved quite closely together historically. This suggests that when more money is lent for the purpose of buying property, we will typically also see a rise in the number of transactions. READ MORE:” CoreLogic Blog – What corelogic data tells us about the record fall in housing finance -13072020 |
