The March 2016 edition of our joint mortgage industry report used data from the Digital Finance Analytics household surveys to discuss the evolution of the home loan market.
Specifically, volume 22 focuses on three important issues
- Building A Picture Of Credit Demand – We consider the changing inputs into housing credit growth over time, initially through a model of household gearing tolerance, and more recently through the transition from heightened investor activity towards increased owner occupied re-financing.
- Taking A Closer Look At Investors – Given that the investor market (largely centered around Sydney and Melbourne) has been a key area of focus of banks, regulators and politicians, we assess four areas of potential risk in greater detail.
- Implications For Australian Banks – It is clear that Australian banks will need to target re-financers going forward as a key area of focus – not only to maintain market share, but also to offset the ongoing amortisation headwind from lower rates. Accordingly, target market identification and distribution strategies will hold even greater importance.
Note that due to regulatory compliance, the full report is only available from JP Morgan. However, the underlying survey data and analysis is available on request from DFA via the Property Imperative. This publication contains considerably more detailed information than was used in the final joint report.
