SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased 3.0% in August 2008 compared with July 2008. The trend series for the total value of dwelling finance commitments excluding alterations and additions decreased 1.3% in August 2008.

The total value of owner occupied housing commitments (seasonally adjusted) fell 2.1% (down $263m) in August 2008, following a revised decrease of 0.6% in July 2008. The decrease this month was due to falls in the purchase of established dwellings excluding refinancing (down $104m, 1.4%), the refinancing of established dwellings (down $88m, 2.4%), purchase of new dwellings (down $36m, 7.6%) and the construction of dwellings (down $35m, 3.5%). The trend series for the value of owner occupied commitments decreased by 1.5% in August 2008.

The total value of investment housing commitments (seasonally adjusted) decreased 5.0% (down $285m) in August 2008 compared with July 2008, following a revised increase of 2.5% in July 2008. The decrease this month was due to falls in the purchase of dwellings by others for rent or resale (down $179m, 23.5%) and the construction of dwellings for rent or resale (down $155m, 21.5%), while an increase was recorded for the purchase of dwellings by individuals for rent or resale (up $49m, 1.2%). The trend series for the total value of investment housing commitments decreased 1.0% in August 2008.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) decreased 2.2% (down 1,102) in August 2008 compared with July 2008, following a revised decrease of 0.9% in July 2008. Decreases were recorded in the purchase of established dwellings excluding refinancing (down 419, 1.5%), the refinancing of established dwellings (down 418, 2.5%), construction of dwellings (down 162, 4.0%) and the purchase of new dwellings (down 103, 6.0%), The trend estimates for the total number of owner occupied housing commitments decreased 2.3% in August 2008.

The number of owner occupied housing commitments (seasonally adjusted) decreased in August 2008 compared with July 2008 in Queensland (down 398, 4.0%), Victoria (down 284, 2.3%), New South Wales (down 266, 1.8%), Western Australia (down 111, 1.7%), South Australia (down 96, 2.3%), Tasmania (down 48, 4.7%) and Northern Territory (down 15, 4.1%), while an increase was recorded in the Australian Capital Territory (up 13, 1.9%).

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments remained unchanged at 18.6% from July 2008 to August 2008. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments decreased from 8.8% in July 2008 to 4.6% in August 2008. This is the lowest level recorded since the series commenced in 1991. The average loan size for owner occupied housing commitments rose from $248,400 in July 2008 to $249,200 in August 2008.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) decreased 2.0% in August 2008 compared with July 2008, following a revised decrease of 0.2% in July 2008. The trend fell 2.3% in August 2008, the thirteenth consecutive monthly decrease.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) fell 4.0% in August 2008 compared with July 2008, following a revised decrease of 3.4% in July 2008. The trend series fell by 2.8%, the ninth consecutive monthly decrease.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell 6.0% in August 2008, following a revised decrease of 3.4% in July 2008. The trend series fell by 2.8% in August 2008, the fourteenth consecutive monthly decrease.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) fell 1.9% in August 2008, following a revised decrease of 0.6% in July 2008. The trend series fell 2.2% in August 2008, the eighth consecutive monthly decrease.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell 2.5% in August 2008 compared with July 2008, following a revised decrease of 2.3% in July 2008. The trend series fell 2.1% in August 2008, the seventh consecutive monthly decrease.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) decreased 1.4% in August 2008 compared with July 2008, after a revised increase of 0.2% in July 2008. The trend series fell 1.6% in August 2008, the eighth consecutive monthly decrease.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased 7.9% in August 2008 compared with July 2008, after a revised decrease of 8.3% in July 2008. The trend series in the number of owner occupied dwellings financed by non-banks decreased 6.8% in August 2008, the fourteenth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) decreased 7.8% and the trend series decreased 7.6%, the fifteenth consecutive monthly decrease.

HOUSING LOAN OUTSTANDINGS

At the end of August 2008, the value of outstanding housing loans financed by authorised deposit-taking institutions was $773,391m, up $8,183m (1.1%) from the July 2008 closing balance. Owner occupied housing loans financed by authorised deposit-taking institutions increased $5,526m (1.1%) to $526,175m and investment housing loans financed by authorised deposit-taking institutions increased $2,657m (1.1%) to $247,216m.

Bank loans increased $7,892m (1.1%) during August 2008 to reach a closing balance of $730,327m. Owner occupied housing loans of banks increased $5,274m (1.1%) to $491,469m and investment housing loans increased $2,618m (1.1%) to $238,858m.