(15 April 2015 – Australia) The Reserve Bank of Australia (RBA) may breathe a sigh of relief as Australian Bureau (ABS) statistics show the value of loans to housing investors has fallen for a second consecutive month.
Total housing finance value decreased 1.0 percent in February, with a 3.4 percent fall in approvals for investment housing.
Meanwhile the number of home loans approved increased 1.2 percent, short of the market expectation of a 3 percent rise.
Late last year the Australian Prudential Regulation Authority (APRA) made a move to reign in record property prices, driven largely by investor demand.
APRA tightened the rules for investor loans aiming to cool the housing market; this could be the reason for the fall in the value of loans to investors.
It is still too early to tell if APRA’s moves have had an effect on housing demand or prices, but there is an expectation that home construction within the sector will continue to plough ahead to lessen the gap.