Bank investors should be wary given that housing affordability remains poor and the RBA could yet make it worse. auspoI
It’s been a familiar pattern in Australia: house prices rise, activity picks up and banks sell more loans.both strengthening and broadening , but Citi analyst Brendan Sproules says the pick-up might be a “false flag” for improving mortgage growth for banks.David Rowe
But demand beyond that is poor, with new lending commitments plunging 20 per cent in four months in a fall not seen since the global financial crisis.Chanticleer would also note the profit warning issued by Lendlease on Monday related partly to weakness in its Australian Communities new housing business.. But the combination of high house prices, higher interest rates and a slowing economy means affordability will be an issue for many of these buyers.
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