The ABS data today showed that investor lending in January was very strong. Our weekly household surveys ask about buying intentions – a forward looking estimate based on whether they are likely to transact in the next 12 months.
We have an indication earlier in the year from our weekly tracker than perhaps investors were getting cold feet – there was talk of changes to negative gearing, lifting rates and slower home price growth. Last week the buying signals were back to normal, as investors relished in the recent strong home price growth, and Government statements that negative gearing was safe. Despite slow rental income growth it is all about capital gains.
Now here is the latest chart, with the January loan volumes also added and the latest intentions plotted. Investors are still piling into the market – expect strong auction results this weekend. Intentions are stronger than ever!