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ANZ analysts point out that the value of Australian housing finance fell by 2.4% m/m in May, after a revised flat result in April.

Key Quotes

“Annual growth dropped to 20.9% y/y, which is the lowest in the past ten years.”

“Owner occupier finance fell by 2.7% m/m, leading to a y/y contraction of 18.0%. This is the lowest annual result for owner occupiers since 2010. However, the election in May and string of public holidays in April may have weighed on this result.”

“Given the dramatic shift in sentiment since then we would expect to see a lift in credit growth in the next few months.”

“Weakness in investor demand (-1.7% m/m, 27.8% y/y) was less gloomy, representing only a small tick down compared with April.”

“The y/y result is still up on the recent trough of -29.2% y/y seen in February.”