5609.0 - Housing Finance, Australia, May 2011 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 11/07/2011   
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SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed (Tables 11, 1 & 2)

The total value of dwelling commitments excluding alterations and additions (trend) fell 0.1% in May 2011 compared with April 2011, while the seasonally adjusted series rose 2.9% in May 2011.

The total value of owner occupied housing commitments (trend) rose 0.1% (up $9m) in May 2011, following a fall of 0.2% in April 2011. Rises were recorded in commitments for the purchase of established dwellings (up $7m, 0.1%) and the construction of dwellings (up $6m, 0.4%), while the purchase of new dwellings fell (down $3m, 0.4%). The seasonally adjusted series for the value of owner occupied commitments rose 2.2% in May 2011.

The total value of investment housing commitments (trend) fell 0.4% (down $27m) in May 2011 compared with April 2011, the thirteenth consecutive monthly fall. Falls were recorded in commitments for the purchase of dwellings by individuals for rent or resale (down $23m, 0.4%), the construction of dwellings for rent or resale (down $2m, 0.5%) and the purchase of dwellings by others for rent or resale (down $2m, 0.3%). The value of investment housing commitments seasonally adjusted rose 4.4% in May 2011.

INVESTMENT HOUSING - TOTAL
Graph: INVESTMENT HOUSING - TOTAL



Number of Owner Occupied Dwellings Financed (Tables 1 & 2)

The number of owner occupied housing commitments (trend) rose (up 52, 0.1%) in May 2011 compared with April 2011. Rises were recorded in commitments for the refinancing of established dwellings (up 170, 1.1%) and the construction of dwellings (up 8, 0.2%), while falls were recorded for the purchase of established dwellings excluding refinancing (down 111, 0.4%) and the purchase of new dwellings (down 15, 0.8%). The seasonally adjusted estimate for the total number of owner occupied housing commitments rose 4.4% in May 2011.

Graph: Number of Owner Occupied Dwellings Financed


Number of Owner Occupied Dwellings Financed - State (Tables 5 & 6)

Between April 2011 and May 2011, the number of owner occupied housing commitments (trend) rose in Western Australia (up 89, 1.5%) and Victoria (up 36, 0.3%), while falls were recorded in New South Wales (down 88, 0.6%), Queensland (down 40, 0.5%), South Australia (down 24, 0.7%), Tasmania (down 6, 0.7%), the Northern Territory (down 3, 0.8%) and the Australian Capital Territory (down 3, 0.3%). The seasonally adjusted estimates rose in all states and territories.


First Home Buyer Commitments (Table 9)

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell from 15.8% in April 2011 to 15.4% in May 2011. Between April 2011 and May 2011, the average loan size for first home buyers rose $800 to $286,200. The average loan size for all owner occupied housing commitments fell $2,600 to $287,200 for the same period.


Number of Owner Occupied Dwellings Financed Excluding Refinancing (Tables 1 & 2)

The number of owner occupied housing commitments excluding refinancing (trend) fell 0.4% in May 2011 compared with April 2011, following a fall of 0.7% in April 2011. The seasonally adjusted series rose 1.1% in May 2011.

Graph: Number of owner occupied dwellings financed excluding refinancing


PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings (Tables 1 & 2)

The number of finance commitments for the construction of dwellings for owner occupation (trend) rose 0.2% in May 2011 compared with April 2011, after a fall of 0.1% in April 2011. The seasonally adjusted series rose 6.2% in May 2011, the largest rise in percentage terms since October 2009.

Graph: Construction of dwellings


Purchase of new dwellings (Tables 1 & 2)

The number of finance commitments for the purchase of new dwellings for owner occupation (trend) fell 0.8% in May 2011 compared with April 2011, following a fall of 1.7% in April 2011. The seasonally adjusted series rose 4.6% in May 2011, following a rise of 9.5% in April 2011.

Graph: Purchase of new dwellings


Purchase of established dwellings (including refinancing across lending institutions) (Tables 1 & 2)

The number of finance commitments for the purchase of established dwellings for owner occupation (trend) rose 0.1% in May 2011 compared with April 2011, after a fall of 0.2% in April 2011. The rise in May was driven by refinancing. The seasonally adjusted series rose 4.1% in May 2011, following a rise of 4.8% in April 2011.

Graph: Purchase of established dwellings including refinancing


Refinancing (Tables 1 & 2)

The number of refinancing commitments for owner occupied housing (trend) rose 1.1% in May 2011 compared with April 2011, following a rise of 0.8% in April 2011. The seasonally adjusted series rose 11.4% in May 2011, the largest rise in percentage terms since March 2001.

Graph: Refinancing


TYPE OF LENDER (OWNER OCCUPATION)

Banks (Tables 3 & 4)

The number of commitments for owner occupied dwellings financed by banks (trend) rose 1.0% in May 2011 compared with April 2011, following a rise of 0.7% in April 2011. The seasonally adjusted series rose 5.7% in May 2011.

Graph: Banks


Non-banks (Tables 3 & 4)

The number of commitments for owner occupied dwellings financed by non-banks (trend) fell 6.3% in May 2011, following a fall of 6.5% in April 2011. The seasonally adjusted series fell 5.8% in May 2011. The number of commitments for owner occupied dwellings financed by permanent building societies (trend) fell 4.9%. The seasonally adjusted series fell 7.5% in May 2011.

Graph: Non-banks


HOUSING LOAN OUTSTANDINGS

(Table 12)

At the end of May 2011, the value of outstanding housing loans financed by authorised deposit-taking institutions (ADIs) was $1,089,988m, up $9,225m (0.9%) from the April 2011 closing balance. Owner occupied housing loan outstandings financed by ADIs rose $7,031m (0.9%) to $763,293m and investment housing loans financed by ADIs rose $2,194m (0.7%) to $326,695m.

Bank housing loan outstandings rose $8,247m (0.8%) during May 2011 to reach a closing balance of $1,033,016m. Owner occupied housing loan outstandings of banks rose $6,243m (0.9%) to $717,181m and investment housing loan outstandings of banks rose $2,004m (0.6%) to $315,835m.