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Housing loan growth fastest in four years

A file photo of houses in Melbourne - AAP 1 of 1 5370537724001 The amount of outstanding mortgages in Australia grew by the fastest monthly pace in four years. But economists doubt financial regulators will be too concerned at this stage with investor loans still relatively subdued. New figures from the Reserve Bank of Australia showed housing credit grew by 0.6 per cent in May, the largest rise since June 2017. Annual growth now stands at 4.8 per cent, its highest since 2018. Owner-occupier loans rose 0.7 per cent in the month to 6.6 per cent, also the highest year rate since 2018. However, growth in loans to housing investors remained relatively modest, rising 0.4 per cent in May to 1.6 per cent.

Don t let FOMO railroad your property investment strategy

Don’t let FOMO railroad your property investment strategy Despite the heat in the housing market, a pragmatic long-term approach will withstand shifts in personal, market and social circumstances. Save Share There isn’t a lot of room for hesitancy in the residential property market. Tax incentives, low interest rates and the lack of supply are culminating to drive frenzied demand and surging prices. In the 12 months to the end of May, 218 areas joined the million-dollar club. There’s no sign of a significant slowdown, with CoreLogic’s national home value index up 2.2 per cent over May, following a 2.8 per cent rise in March – the fastest rate of appreciation since 1988.

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