More good news for the RBA and its monetary policy: housing finance hit another seasonally adjusted record in November, implying that Australians are getting comfortable with borrowing once again.
While Australia’s savings rate remains steadfastly above 10%, both the value and number of new dwelling commitments rose during November.
Today’s ABS data showed a total of 52,912 new loans written during the month, up 1.1% compared to analyst forecasts of 1.0%.
The total value of commitments rose 1.7% to a seasonally adjusted $26.934 billion, suggesting that Australians are getting more comfortable taking on more debt and increasing the size of their loans.
The average first home buyers loan size crept up to $298,000 from $296,100 in recent months, but a big jump in non-first home owner loan size from $313,500 to $322,200 might just have authorities – particularly APRA – concerned over high LVR lending.
On balance, as long as this surge in house prices recently doesn’t morph into a bubble, the overall trend in housing finance, construction and retail sales is positive for the Australian economy.