Tighter credit conditions are continuing to have an affect on the housing markets with the latest Housing Finance figures showing that totaling lending for Housing for August was down -3.1% on last month and -3.2% compared to the previous 12 month period with the rate of decline greater for owner occupiers down -4.3% on last month, and investors down -1.4% for the month.
As the charts below show, lending to investors in the month equaled $10.10bn which is the lowest point since September 2013 and down 30% from the peak in April 2015 before the first round of credit tightening by APRA. Investment lending now accounts for just 41% of total lending.
Total lending to investors over the past 12 months is now down -11.8% to $134bn compared to the previous 12 months.
For Owner Occupiers lending conditions for the 6 months up to August were relatively flat, however the decline in lending in August is likely a reflection of the more widespread downturn in housing values and volumes across the market.