House prices in Melbourne and Sydney – particularly in better suburbs – have risen very fast in the last few months. At the same time, home lending is sharply down. As Peach business partner, financial e-newsletter The Sheet reports “The Australian Finance Groups mortgage index really a fancy label for their monthly new sales report for September showed an abrupt drop of 21 per cent in residential lending that month as borrowers retreated from the market.”
So what’s going on completely beats me. The explanation for the reduced turnover in new loans (which we’re avoiding but only with increased advertising spending) seems to be procrastination ahead of the election.
But then where is this money coming from to buy all those properties in Toorak, Brighton, Double Bay etc?
Again, I could understand general rises in these suburbs as a result of demographic factors, but they’ve all turned up in the last three months. Pretty strange.