Economics

Australian Housing’s Resilience Buoyed by Cheap and Easy Credit

  • First-home buyers purchasing homes as investors vacate market
  • Government grants are supporting demand during the recession
Photographer: Brendon Thorne/Bloomberg
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Australians are diving into home ownership, taking advantage of low interest rates and government stimulus programs -- undeterred by the nation’s first recession in almost three decades.

Credit for home purchases rose by 0.2% in August for an annual gain of 3.2%, Reserve Bank of Australia data showed Wednesday. A separate release from the Australian Bureau of Statistics showed building approvals fell 1.6% in August, giving back a little bit of a 12.2% surge in July.