Divergent trends are apparent in the housing market of late, with investors continuing to show momentum, while credit to owner-occupiers has consolidated since the end of last year.
Andrew Hanlan, the Westpac senior economist was commenting after investment property loan growth accelerated sharply last month, at the fastest year-on-year growth since the first quarter of 2008.
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The surge in investment loan lending to pre-GFC levels saw loans to investors in June jump 0.9%, according to Reserve Bank of Australia data published Thursday.
Annual investment loan growth has now hit 8.7%.
Loans to households – including owner-occupiers – rose by a more modest 0.6%, taking the annual gain to 6.4%.
“Notably, low and falling interest rates in 2013 triggered a sharp lift in new lending for housing,” Andrew Hanlan noted.
This story originally appeared at PropertyObserver.