Five charts that explain what’s really happening with housing

August 19, 2026 — 4:04pm

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The deep drop in new mortgage applications is a stark illustration of how much the housing market has fallen – and some experts are warning we are yet to reach the bottom.

Since the May budget, all four major banks have reported hefty declines in loan applications, though economists also point out the mortgage slide is coming on the heels of an enormous boom in lending, fuelled by a surge in house prices. Some experts say a three-decade “super cycle” for housing could be ending, and there is little doubt that credit growth will slow down.

But the credit tap is not being turned off entirely. Far from it; even if new lending falls by 30 per cent, as some expect, it will still only take the annual flow of credit going into the property market back to where it was a few years ago.

Here are five charts that explain the boom in Australian mortgage lending – and the fall in new lending that is expected as the housing market continues to slow.

1. Australia’s post-COVID housing boom stood out

Our housing market had long been known for being one of the most expensive in the world. But since COVID-19, local house prices have risen more quickly than key comparable nations.

Australian house prices rose more than 50 per cent since COVID-19, according to this chart from........

© Brisbane Times