This chart shows bank rules are making the housing crisis worse
Lending by banks to property development has plunged since 2008, exacerbating pressure on housing supply. Is it time for a rethink of the banking sector’s regulatory settings?
The return to house price rises in May – the capital city price index rose by 0.5 per cent, with annual growth running at 2.6 per cent – is hardly a surprise. With so many buyers locked out of the market, even the slightest boost to affordability was always going to lift prices. REA Group saw buyers positioning a month ahead of the first rate cut in February, and Cotality says buyers are already baking in cuts still to come.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
