ANZ found that the volume of housing credit increased by 0.5 per cent over the month. The owner occupier segment led the way with a 0.6 per cent rise, while investor credit grew by 0.3 per cent.
ANZ noted that investor credit growth remained soft due to tighter borrowing conditions for investors in the past year.
“Although stronger owner occupier credit growth has provided some offset to this, overall housing credit growth has slowed in recent months,” the bank said.
“Having said that, the housing market has started 2016 in a fairly positive fashion. Auction clearance rates are noticeably higher than at the end of 205, particularly in Sydney. If this higher level of housing market sentiment continues, housing credit could potentially strengthen.”
Meanwhile, business credit rose by 0.6 per cent in January, while personal credit declined by 0.2 per cent. The volume of total credit grew by 0.5 per cent over the period.
[Related: Businesses continue to drive credit growth]