Article on Australian Housing Finance Trends – May 2024

The Australian housing market experienced a slight decline in new housing finance approvals in May, with a 1.7% decrease excluding refinancing. This dip followed three consecutive months of gains but is seen more as a minor consolidation rather than the start of a downward trend. Despite the decline, the value of new finance approvals rose by 18% year-on-year, indicating continued growth in the housing sector.

The decline in approvals was spread across all buyer groups, with owner-occupiers experiencing a more pronounced decrease compared to investors. The state detail showed a significant drop in housing finance approvals in New South Wales, while Western Australia continued to see strong gains in the market.

Overall, the housing market is still experiencing a price-led upswing, but the pace of growth is slowing in the major eastern states. The data suggests that total housing credit is expected to firm up slightly as we head into 2025. This report provides valuable insights into the current state of the Australian housing market and the trends shaping its future.
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