Growth in housing lending continues to deteriorate, once again hitting record lows.
Despite low interest rates, housing credit rose by only 4.5 per cent in the 12 months to December 2012, down from 4.6 per cent in the 12 months to November 2012 and the lowest growth in the 35 year history of the data.
On a monthly basis, housing credit increased by 0.3 per cent in December, down from 0.4 per cent the month earlier. Growth for owner-occupier credit fell to a positive 0.3 per cent, down from 0.4 per cent recorded in the previous month.
Investor loans currently have the strongest growth at 0.4 per cent, down from 0.5 per cent in November. For the year to December, housing loans to investors grew by 5.5 percent.
» Financial Aggregates December 2012 – The Reserve Bank of Australia, 31st December 2012.