After two and a half years of declining residential lending, the past few months look to be showing the first signs that volumes have reached their trough and are on the improve. Record low interest rates, less-stringent lending requirements and improved sentiment towards the residential sector post the federal election and Banking Royal Commission are having an impact. Additionally, the decline in dwelling prices in Sydney and Melbourne appears to have arrested.

Taken with other factors such as improved auction clearance rates (albeit from low volumes), it appears key leading indicators are turning for the better.