10 Apr Sharp slowdown in NSW mortgage application growth points to a contraction in NSW property home prices
Recently release figures from Veda’s Quarterly consumer credit demand index shows the annual rate of growth in mortgage applications slowed from 13.6% in the June 2015 quarter to an annual rate of decline of 0.30% in the march Quarter of 2016.
NSW recorded the sharpest slowdown in mortgage application growth, a decline of 1.2% down from a high of +21.7% growth in the June 2015 quarter.
Other regions where declines in mortgage applications were registered include:
• Tasmania -10.8%
• WA -13.9%
Mortgage growth was still buoyant in Victoria (+5.9%), South Australia +2.5%), Queensland +1.6% and ACT (+0.5%), but growth was down significantly from recent peaks in all of these jurisdictions.
The Veda index has historically tended to lead movements in house prices by around 6-9 months, with mortgage applications a good indicator of home buyer demand and housing turnover.
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