Official figures out today from the Australian Bureau of Statistics show home loan approvals fell 1.8% in February, the fifth consecutive fall. This has prompted some economists to forecast house asset price falls in the next coming months.
According to the Sydney Morning Herald, Matt Robinson, an economist from Moody’s Economy.com said based on the trends over the past three years, there was a high correlation of loan growth over 2 per cent a month and house price appreciation about 3 per cent quarter on quarter.
”Because we’re seeing five months now of declining housing finance, based on those trends, we would likely see slowing house price appreciation if not some kind of plateau or decline in house prices in a couple of months’ time.”
» Loans slump may point to house price fall – The Sydney Morning Herald, 12th April 2010.
» Australian home loan approvals fall of a cliff – Who crashed the economy?, March 10th, 2010.
» No ‘pent up’ demand for Mortgage Approvals – Who crashed the economy?, February 10th, 2010.
» Shock plunge in home loan approvals – Who crashed the economy?, January 12th, 2010.