June 4, 2021

A focus on bank lending standards and the upside for our senior secured lending strategy


    1. House prices: The CoreLogic national Home Value Index rose a further 2.2% in May to be up 10.6% for the year. The rise in housing markets have been broad-based across geography, housing types, and valuation segments, but two trends that were evident throughout 2020 have begun to “normalise”. These include the more recent outperformance in capital city home prices (particularly the large capital cities) compared to regional areas which previously benefited from demographic and COVID-19 related demand shift, as well as the relative outperformance of the most expensive end of the market.
    2. Housing credit growth, including from investors: Housing credit grew 0.5% in April, comprising a 0.6% increase in owner-occupier housing credit and a 0.4% increase in investor housing credit.

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