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Not slowing down: Housing credit continued to soar in September - RBA
Topic Started: 31 Oct 2014, 02:15 PM (1,473 Views)
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Housing lending not slowing down: RBA

October 31, 2014 - 1:55PM
Stephen Cauchi

Housing credit continued to soar in September with lending to investors once again the driving force, adding further urgency to the debate over whether regulatory measures are needed to take the heat out of residential property prices.

New figures from the Reserve Bank of Australia showed growth in both the owner-occupier and investor housing sectors. Overall private sector credit, meanwhile, also continued to increase in September, rising 0.5 per cent for a 12-month gain of 5.4 per cent - the highest annual figure since February 2009.

The data will continue to fuel speculation the RBA could use tougher rules governing bank loans - so-called macro-prudential tools - to take the heat out of the housing market.

Doing so may keep the housing market from overheating while at the same time keeping interest rates low to help the rest of the economy.

The housing figures from the RBA's data today showed:

*Overall housing credit rose 0.5 per cent in September - the same as in August. This pushed the 12-month figure to 6.8 per cent, the highest since February 2011.

*Credit for owner-occupier housing rose 0.5 per cent in September, the same as for August. This pushed the 12-month figure to 5.5 per cent, the highest since January 2012.

*Credit for investor housing rose 0.9 per cent in September, compared to 0.8 per cent in August. This pushed the 12-month figure to 9.5 per cent, the highest since March 2008.

Nationally, housing prices have grown at 9.3 per cent over the past year. Investor housing loans now account for around half of all housing loans (excluding owner-occupier refinancing), which is a record high. Investor activity has been particularly prevalent in New South Wales, according to the data.

Read more: http://www.smh.com.au/business/housing-lending-not-slowing-down-rba-20141031-11eqzf.html
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Perthite
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Great... now macro the shit outta it.

:tu:
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Lef-tee
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Perthite
31 Oct 2014, 02:17 PM
Great... now macro the shit outta it.

:tu:
Obviously I think that's what should be done but it won't happen - out entire political class has a personal stake in house price inflation.
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Ex BP Golly
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Posted Image]

Time to pop this thing

WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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peter fraser
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Lef-tee
1 Nov 2014, 07:15 AM
Obviously I think that's what should be done but it won't happen - out entire political class has a personal stake in house price inflation.
Have you ever stopped to consider that prices are this high because in the past the RBA has put the brakes on before we had an adequate supply response? If the RBA hit the brakes now it would bring a cheer from the bears even though it would just be setting up the next boom.

I understand that most bears just want a cheap house and after they buy they will become bulls because that then suits their hip pocket, but you already own, shouldn't you be looking at a much longer term solution than the "I Wanna House Crowd"
Any expressed market opinion is my own and is not to be taken as financial advice
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peter fraser
1 Nov 2014, 08:16 AM
Have you ever stopped to consider that prices are this high because in the past the RBA has put the brakes on before we had an adequate supply response? If the RBA hit the brakes now it would bring a cheer from the bears even though it would just be setting up the next boom.

I understand that most bears just want a cheap house and after they buy they will become bulls because that then suits their hip pocket, but you already own, shouldn't you be looking at a much longer term solution than the "I Wanna House Crowd"
I would rather they pump this thing to the death. So no macro calls from me.

Its a bit like the cartoon we used to watch when we were kids. Where that electrical type monster goes around sucking the power out of everything else while it grows bigger and bigger. In our case though, its the prices and debt levels sucking the life out of everybody else and the economy.

As mentioned earlier, many politicians are tied to property and more than likely very leveraged. So their interests are with themselves and not with people of Australia. They know just how much they will lose when it starts heading backwards. With many of them leveraged into multiple Canberra property, they are trying desperately to stop it, which has helped Sydney and Melbourne a bit,but nowhere else.

But rents are being hammered there now, so won't be long before investors jump ship if they aren't already. With massive jobs losses, record overbuilding,falling wages and falling rents, what could possibly go wrong. I might put 3% deposit down on another five properties and pay interest only loans. Surely prices and rents and wages can only double every seven years like they always have, that's what history shows us. :bl:

The bulls history argument, is fast proving what an absolute load of shit that one was, proven here and all throughout the western world and economies, and of shadows specials.

Let's see if any clowns or trolls needs very clear examples off this. We can educate the herd further and open their eyes to some more reality. ;)



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Foxy
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Zero is coming...

Well i think the housing bubble is simply a case of collateral damage.

Low interest rates are needed to prop up a failing economic system, so as Marc Faber did say many times inflation is going to hit.

We have inflation in our housing market.

An asset class that makes a net loss.

Peter
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Bardon
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Stakeholders and bankers are endogenous to the system and are within the cycle, they are not the cause of the cycle and they cannot stop it from unfolding. This is why it will always repeat with an ever increasing amplitude.
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Sydneyite
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1 Nov 2014, 08:54 AM
But rents are being hammered there now, so won't be long before investors jump ship if they aren't already. With massive jobs losses, record overbuilding,falling wages and falling rents, what could possibly go wrong
You have been shown time and time again that these statements are mostly false - made up crap in mainly.

- Rents are rising in aggregrate, property prices are rising, investors are not running for the hills, they are buying with their ears pinned back.

- Job losses are not "massive" - we have had far far worse many times in our history than the current mild rise in unemployment.

- We do not have "record overbuilding" - we have a good supply response building, mainly in areas with chronic under-supply such as Sydney, as a result of recent property price increases - this is exactly what the RBA wanted to see happen. Eventually this supply should halt price increases for a while, but it's not going to "crash" the market USA/Ireland style.

- Wages are still rising, not falling. To say the later is complete made up bullshit.

Repeating the same bullshit, lies, and exaggerations over and over again will not make them become facts. :re: Even if you do mention imaginary falling rents twice! :dry:
Edited by Sydneyite, 5 Nov 2014, 11:39 AM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Emmanuel
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Sydneyite
5 Nov 2014, 11:37 AM
You have been shown time and time again that these statements are mostly false - made up crap in mainly.

- Rents are rising in aggregrate, property prices are rising, investors are not running for the hills, they are buying with their ears pinned back.

- Job losses are not "massive" - we have had far far worse many times in our history than the current mild rise in unemployment.

- We do not have "record overbuilding" - we have a good supply response building, mainly in areas with chronic under-supply such as Sydney, as a result of recent property price increases - this is exactly what the RBA wanted to see happen. Eventually this supply should halt price increases for a while, but it's not going to "crash" the market USA/Ireland style.

- Wages are still rising, not falling. To say the later is complete made up bullshit.

Repeating the same bullshit, lies, and exaggerations over and over again will not make them become facts. :re: Even if you do mention imaginary falling rents twice! :dry:
Yes, rents are not falling. That is true. You might find isolated cases, but as an aggregate, they're heading in the right direction.

And yes, we are not overbuilding. In fact, we have to be very careful not to overbuild, because as you allude to, we don't want to be compared to other countries.

It's all under control and not much to fear about it, except getting in at the right time. But even if you time it wrong, it all works out over time.
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