5609.0 - Housing Finance, Australia, Oct 2010 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 08/12/2010   
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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) rose 0.3% in October 2010 compared with September 2010 and the seasonally adjusted series rose 2.2% in October 2010.

The total value of owner occupied housing commitments (trend) rose 0.9% (up $122m) in October 2010, following a rise of 1.0% in September 2010. Rises were recorded in commitments for the purchase of established dwellings (up $108m, 0.9%) and the purchase of new dwellings (up $14m, 1.9%), while commitments for the construction of dwellings was flat (down $1m, 0.0%). The seasonally adjusted series for the value of owner occupied commitments rose 2.8% in October 2010.

The total value of investment housing commitments (trend) fell 0.8% (down $53m) in October 2010 compared with September 2010, following falls of 1.0% or more in each of the preceding four months. Falls were recorded in commitments for the purchase of dwellings by individuals for rent or resale (down $58m, 1.1%) and the construction of dwellings for rent or resale (down $2m, 0.5%), while commitments for the purchase of dwellings by others for rent or resale rose (up $7m, 1.1%). The value of investment housing commitments seasonally adjusted rose 1.1% in October 2010.

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 454, 0.9%) in October 2010 compared with September 2010. Rises were recorded in commitments for the refinancing of established dwellings (up 261, 1.8%), the purchase of established dwellings excluding refinancing (up 197, 0.7%) and the purchase of new dwellings (up 7, 0.3%), while a fall was recorded in commitments for the construction of dwellings (down 12, 0.2%). The seasonally adjusted estimate for the total number of owner occupied housing commitments rose 1.9% in October 2010.

Graph: Number of Owner Occupied Dwellings Financed


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

Between September and October 2010, the number of owner occupied housing commitments (trend) increased in New South Wales (up 149, 1.0%), Victoria (up 87, 0.7%), Queensland (up 38, 0.4%), Western Australia (up 36, 0.7%), the Australian Capital Territory (up 12, 1.3%) and Tasmania (up 3, 0.3%). South Australia was flat (0, 0.0%), while a fall was recorded in the Northern Territory (down 4, 0.9%). The seasonally adjusted estimates rose in all states and territories except the Northern Territory (down 84, 22.2%), Western Australia (down 48, 0.9%) and South Australia (down 30, 0.8%).


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 15.9% in September 2010 to 15.4% in October 2010. Between September and October 2010, the average loan size for first home buyers rose $3,200 to $282,800. The average loan size for all owner occupied housing commitments rose $1,400 to $286,500 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) rose 0.6% in October 2010 compared with September 2010, following a rise of 0.6% in September 2010. The seasonally adjusted series rose 1.8% in October 2010.

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) fell 0.2% in October 2010 compared with September 2010. The rate of decline has been slowing since February 2010. The seasonally adjusted series rose 0.1% in October 2010.

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) rose 0.3% in October 2010 compared with September 2010, following a rise of 0.6% in September 2010. The seasonally adjusted series rose 9.4% in October 2010.

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 1.1% in October 2010 compared with September 2010, following a rise of 1.0% or more in each of the previous four months. The seasonally adjusted series rose 1.8% in October 2010.

Graph: Purchase of established dwellings including refinancing


Refinancing (Tables 1 & 2)

The number of refinancing commitments for owner occupied housing (trend) rose 1.8% in October 2010 compared with September 2010, following a rise of 1.9% in September 2010. The seasonally adjusted series rose 2.4% in October 2010.

Graph: Refinancing


TYPE OF LENDER (OWNER OCCUPATION)

Banks (Tables 3 & 4)

The number of commitments for owner occupied dwellings financed by banks (trend) rose 0.8% in October 2010 compared with September 2010, following a rise of 0.8% in September 2010. The seasonally adjusted series rose 0.4% in October 2010.

Graph: Banks


Non-banks (Tables 3 & 4)

The number of commitments for owner occupied dwellings financed by non-banks (trend) rose 2.1% in October 2010, following a rise of 2.4% in September 2010. The seasonally adjusted series rose 12.2% in October 2010. The number of commitments for owner occupied dwellings financed by permanent building societies (trend) rose 3.9%. The seasonally adjusted series rose 21.4% in October 2010, the largest rise since December 2007.

Graph: Non-banks


HOUSING LOAN OUTSTANDINGS

(Table 12)

At the end of October 2010, the value of outstanding housing loans financed by authorised deposit-taking institutions (ADIs) was $1,034,346m, up $7,250m (0.7%) from the September 2010 closing balance. Owner occupied housing loan outstandings financed by ADIs rose $5,211m (0.7%) to $721,002m and investment housing loans financed by ADIs rose $2,039m (0.7%) to $313,344m.

Bank housing loan outstandings rose $6,824m (0.7%) during October 2010 to reach a closing balance of $983,560m. Owner occupied housing loan outstandings of banks rose $4,858m (0.7%) to $680,362m and investment housing loan outstandings of banks rose $1,966m (0.7%) to $303,198m.