Home Price Momentum Crushed By Credit Drought!

One of the critical factors in our core market model is a set of linkages between home price momentum and input factors, such as demand, migration, interest rates, Government incentives, inflation and availability of credit. Each has an influence on the others, and on the trajectory of home prices. But the greatest of these is credit availability. When mortgage lending booms, so does home prices, when it falls, so do prices. Up until recently, we saw credit for housing running significantly faster than wages growth or inflation, as lenders continued to push loans to investors, ahead of prospective owner occupiers. We […]