The picture in early 2025 “is of a housing upturn that has lost considerable momentum” Westpac economics team said in an analysis of quarterly ABS lending data yesterday.
The value of new dwelling finance approvals, excluding refinancing, declined 1.6% over the March 2025 quarter.
“Approvals have been essentially flat over the last two quarters after a 14.6% surge over Q2 and Q3 last year” Matthew Hassan from Westpac said.
“Annual growth slowed to 14.2% over the last year from a peak of 24.6% over a year in Q3 last year - and is likely to slow to a single-digit pace in Q2” Hassan said.
“Overall, the picture in early 2025 is of a housing upturn that has lost considerable momentum.
“While the RBA’s February rate cut generated some positive response, particularly in the softer Sydney and Melbourne markets, turnover has been soft with moderating price growth in the previously strong ‘middle-sized’ capital cities of Brisbane, Adelaide and Perth also a prominent feature.
“The weakness in construction-related loans is also of note, suggesting the lift in dwelling approvals in recent months is likely to fade. All up, the picture is of a housing upturn that has lost much of its momentum and a sector that may continue to lack direction near term.”