New lending by both owner occupiers and investors has recorded the biggest monthly fall on record, but Prime Minister Scott Morrison says it’s still too early to make any calls on any house prices.
New loan commitments for housing fell by 11.6 per cent in May – the worst on record. The value of new loan commitments for owner occupiers fell 10.2 per cent and new loans for investors fell 15.6 per cent – the lowest level since 2002.
Despite the record plunge in lending and three months of sliding house prices, Mr Morrison said there was no reason to panic about a collapse in house prices.
“I think it would be as little premature to be making medium or even short-term forecasts about the Australian property market at the moment,” Mr Morrison said.
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