5609.0 - Housing Finance, Australia, Apr 2007  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 08/06/2007   
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SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 2.7% in April 2007 compared with March 2007. The trend series for total value of dwelling finance commitments increased by 1.3% in April 2007.


The total value of owner occupied housing commitments (seasonally adjusted) rose by 3.5% (up $515m) in April 2007, following a 1.6% rise in March 2007.


An increase was recorded for purchase of established dwellings excluding refinancing (up $452m, 5.0%) and refinancing of established dwellings (up $116m, 3.0%), more than offsetting a decrease in purchase of new dwellings (down $37m, 4.8%) and construction of dwellings (down $15m, 1.4%). The trend series in the value of owner occupied commitments increased by 1.2% in April 2007.


The total value of investment housing commitments (seasonally adjusted) increased by 0.7% (up $45m) in April 2007 compared with March 2007, following a decrease of 5.0% in March 2007. The increase this month was due to a rise in purchase of dwellings by individuals for rent or resale (up $144m, 2.7%) and purchase of dwellings by others for rent or resale (up $95m, 19.4%), more than offsetting a decrease in construction of dwellings for rent or resale (down $195m, 38.2%). The trend series in total value of investment housing commitments increased by 1.5% in April 2007.

INVESTMENT HOUSING - TOTAL
Graph: Investment Housing - Total



Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased by 2.2% (up 1,430) in April 2007 compared with March 2007, following an increase of 1.5% in March 2007. Increases were recorded in purchase of established dwellings excluding refinancing (up 1,061, 2.8%) and refinancing of established dwellings (up 495, 2.6%), which more than offset a decrease in construction of dwellings (down 64, 1.4%) and purchase of new dwellings (down 62, 2.1%). The number of owner occupied housing commitments (trend) increased 0.7% in April 2007.


The number of owner occupied housing commitments (seasonally adjusted) increased in April 2007 compared with March 2007 in New South Wales (up 859, 4.6%), Western Australia (up 658, 7.8%), Queensland (up 323, 2.1%), Victoria (up 267, 1.9%), South Australia (up 131, 2.5%) and Tasmania (up 38, 3.3%). Decreases were recorded in the Australian Capital Territory (down 133, 13.4%) and the Northern Territory (down 27, 5.4%).


The trend estimates increased in all states and the Australian Capital Territory.


In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 16.6% in March 2007 to 17.2% in April 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments rose from 18.2% in March 2007 to 20.0% in April 2007. The average loan size for owner occupied housing commitments fell from $227,700 in March 2007 to $227,500 in April 2007.

Number of Owner Occupied Dwellings Financed
Graph: Number of Owner Occupied Dwellings Financed



Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) increased by 2.1% in April 2007 compared with March 2007, following an increase of 2.4% in March 2007. The trend rose 1.2% in April 2007.

Graph: Number of owner occupied dwellings financed excluding refinancing



PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of construction commitments for owner occupation (seasonally adjusted) fell 1.4% in April 2007, following a 1.2% increase for March 2007. The trend series fell by 0.2% in April 2007.

Graph: Construction of dwellings


Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell by 2.1% in April 2007, following an increase of 5.6% in March 2007. The trend series rose by 1.6% in April 2007 the fifth consecutive monthly increase.

Graph: Purchase of new dwellings


Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) rose 2.7% in April 2007, following an increase of 1.3% in March 2007. The trend series increased by 0.8% in April 2007, the fifth consecutive monthly increase.

Graph: Purchase of established dwellings including refinancing


Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) rose by 2.6% in April 2007 compared with March 2007, following a decrease of 0.5% in March 2007. The trend series fell by 0.3% in April 2007, the seventh consecutive monthly decrease.

Graph: Refinancing



TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 0.9% in April 2007 compared with March 2007, after a 1.6% increase in March 2007. The trend series rose by 0.6% in April 2007.

Graph: Banks


Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) rose by 7.3% in April 2007 compared with March 2007, after an increase of 1.0% in March 2007. The non-bank trend series increased by 1.3% in April 2007.

Graph: Non-banks



HOUSING LOAN OUTSTANDINGS

At the end of April 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $640,043m, up $5,935m (0.9%) from the March 2007 closing balance. Owner occupied housing loans increased by $4,235m (1.0%) to close at $432,721m, while investment housing loans increased by $1,700m (0.8%) to reach a closing balance of $207,322m.


Bank loans increased by $5,645m (0.9%) during April to a closing stock of $602,673m. Owner occupied housing loans of banks increased by $3,988m (1.0%) to $402,868m, while investment housing loans increased $1,657m (0.8%) to $199,805m.