Secondly, and more significantly, this rampant activity all took place before the cash rate was cut to a record low of just 2 per cent on May 5, which will only redouble the resolve of investors.
Smoothing the housing finance figures on a rolling 12 monthly basis shows that the pace of increase in investment lending continues to outstrip that of owner-occupier lending.
State versus state
Credit growth is required and wanted from the housing market to fuel construction, and from business to pump investment.
Heck, even the Treasurer himself advised Aussies now is a good time to borrow money and spend.
Prices to run higher
Fixed rate mortgages are now available with a stunningly cheap "3 handle", and I have attended auctions in the past week where hypnotised buyers have bid gross yields on apartments all the way down to a ridiculously low low 3.6 percent (assuming purchases were made for the purposes of investment).