Where housing debt moves, home prices tend to follow.
The chart below from the Commonwealth Bank demonstrates the relationship between the two.
The percentage change in housing finance is presented as a three-month moving average to help smooth out volatility in seasonally-adjusted data, providing a better indication of the broader trend.
With the value of home loan lending continuing to slide in September, falling to the lowest level in over four years due to weakness in both investor and owner-occupier lending, it helps explain why Australian home prices have fallen for 13 consecutive months.
Based on current lending trends, and the leading relationship it has to valuations, Gareth Aird, Senior Economist at the …
Read the full article at: https://www.businessinsider.com.au/australia-housing-debt-house-prices-2018-11
