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5609.0 - Housing Finance, Australia, May 2005  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 11/07/2005   
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MAY KEY FIGURES

Trend estimates
Seasonally adjusted estimates
May 2005
Apr 2005 to May 2005
May 2005
Apr 2005 to May 2005

Value of dwelling commitments(a)
$m
% change
$m
% change
Total dwellings
17,340
-0.5
16,926
-2.6
Owner occupied housing
11,779
0.2
11,597
-0.6
Investment housing - fixed loans(b)
5,561
-1.9
5,330
-6.8
Number of dwelling commitments(a)
no.
% change
no.
% change
Owner occupied housing
56,195
0.6
55,732
-0.4
Construction of dwellings
4,622
0.9
4,658
2.3
Purchase of new dwellings
2,231
2.2
2,260
1.7
Purchase of established dwellings
49,342
0.5
48,814
-0.7

(a) Includes refinancing.
(b) Excludes revolving credit.

Housing finance, Value of dwellings
Graph: Housing finance

Owner occupied housing finance, Number of dwellings
Graph: Owner occupied housing finance



MAY KEY POINTS


TREND ESTIMATES

  • Total value of dwelling finance commitments excluding alterations and additions decreased by 0.5% in May 2005, the first decrease following nine consecutive monthly increases. Owner occupied housing increased by 0.2%, while investment housing fell by 1.9%.
  • The number of commitments for owner occupation increased by 0.6% in May 2005, while the number excluding refinancing fell by 0.1%.


SEASONALLY ADJUSTED ESTIMATES
  • Total value of dwelling finance commitments excluding alterations and additions fell by 2.6% in May 2005, the third consecutive monthly decrease. This decrease was due to decreases in investment housing commitments (down 6.8%) and owner occupied housing commitments (down 0.6%).
  • The number of commitments for owner occupation decreased by 0.4% in May 2005, while the number excluding refinancing also fell by 0.4%.


ORIGINAL ESTIMATES
  • First home buyer commitments as a percentage of total commitments for owner occupation rose to 16.4% in May 2005. The percentage of the number of commitments for owner-occupied housing at a fixed rate of interest (for at least two years) decreased from 13.4% in March to 11.3% in April.


NOTES

CHANGES IN THIS ISSUE

In the last issue, data quality assurance procedures identified misreporting of the number of owner occupied housing commitments for April, which the relevant data provider was not able to correct in the time available. The ABS estimated the number of loans based on the movement in loan value from March to April for this provider. These estimates aligned closely with final values provided by the respondent which are incorporated in this issue.



INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Darren Page on (02) 6252 6731.



SUMMARY COMMENTARY


SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased by 2.6% in May 2005. The total housing finance trend decreased by 0.5%, the first fall following nine consecutive monthly increases.


The total value of owner occupied commitments (seasonally adjusted) decreased by 0.6% (down $68m) in May 2005, following a decrease of 1.4% in April. The decreases in purchase of established dwellings excluding refinancing (down $139m, -2.0%) and construction of dwellings (down $7m, -0.7%) more than offset increases in refinancing of established dwellings (up $56m, 1.7%) and purchase of new dwellings (up $23m, 4.4%). The trend series in the value of owner occupied commitments rose by 0.2% in May, continuing a run of increases since April 2004 but at a decelerating rate for the fifth consecutive month.


The seasonally adjusted series for value of investment housing commitments (including finance for construction and finance for rent or resale) decreased by 6.8% (down $392m) in May 2005, following a rise of 0.7% in April. The decrease this month was due to decreases in the purchase of dwellings for rent or resale by individuals (down $304m, -6.5%), construction of dwellings for rent or resale (down $45m, -7.2%) and purchase of dwellings for rent or resale by others (down $43m, -10.1%). The trend series for the total value of investment commitments fell by 1.9%, the fourth consecutive monthly decrease.

Graph: INVESTMENT HOUSING - TOTAL


Number of Owner Occupied Dwellings Financed

The number of owner occupied dwelling commitments (seasonally adjusted) decreased by 0.4% (down 200) in May 2005, the first decrease following six consecutive monthly increases. Decreases in the purchase of established dwellings excluding refinancing (down 307, -1.0%) and refinancing of established dwellings (down 36, -0.2%) more than offset increases in construction of dwellings (up 106, 2.3%) and purchase of new dwellings (up 37, 1.7%). The total owner occupied housing finance trend rose by 0.6% in May 2005, the eleventh consecutive monthly increase but at a decelerating rate for the fourth consecutive month.


Decreases were recorded in seasonally adjusted terms in South Australia (down 401, -8.2%), New South Wales (down 363, -2.3%), Queensland (down 326, -2.7%) and Northern Territory (down 18, -3.3%). These decreases were partially offset by a increases in Victoria (up 346, 2.6%), Western Australia (up 196, 2.5%), Tasmania (up 62, 5.4%) and Australian Capital Territory (up 1, 0.0%). The trend increased in all states and territories except New South Wales and Northern Territory.


In original terms, first home buyer commitments as a percentage of total owner occupied housing commitments increased to 16.4% in May 2005. The percentage of commitments at a fixed rate of interest (for at least two years) decreased from 13.4% in April to 11.3% in May.

Graph: Number of Owner Occupied Dwellings Financed


Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied dwellings financed excluding refinancing (seasonally adjusted) decreased by 0.4% in May 2005, the third consecutive monthly decrease. The trend decreased by 0.1% in May 2005, the first decrease following eleven consecutive monthly increases.

Graph: PPW PG 3 graph2



PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The seasonally adjusted number of construction commitments for owner occupation rose by 2.3% in May 2005, following an increase of 0.3% in April. The trend series increased by 0.9% in May 2005.

Graph: pg4 ppw grh construction


Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose by 1.7% in May 2005, following a rise of 4.4% in April. The trend series rose by 2.2% in May 2005.

Graph: PPW graph newly erected pg4


Purchase of established dwellings

The seasonally adjusted established dwelling for owner occupation series decreased by 0.7% in May 2005, the first decrease following six consecutive monthly increases. The trend rose by 0.5% in May 2005, the eleventh consecutive monthly increase but at a decelerating rate for the fourth successive month.

Graph: ppw graph established p4


Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell by 0.2% in May 2005, following strong rises in the past three months. Trend series rose by 2.2% in May 2005.

Graph: ppw graph refinancing pg5



TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) decreased by 1.2% in May 2005, the first decrease following six consecutive monthly increases. The trend series increased by 0.9% in May, the eleventh consecutive monthly increase but at a decelerating rate for the fourth successive month.

Graph: PPW PG 5 graph 2


Non-banks

Non-bank commitments for owner occupied housing (seasonally adjusted) increased by 2.7% in May 2005, following a decrease of 6.9% in April. Wholesale lenders were up 1.2% while permanent building societies were down 1.5%. The non-bank trend series decreased by 0.4% in May 2005, the second consecutive monthly decrease.

Graph: PPW PG 5 graph 3



HOUSING LOAN OUTSTANDINGS

At the end of May 2005, housing loans outstanding of authorised deposit-taking institutions was $516,954m, up $5,956m (1.2%) from April's closing balance. Owner occupied housing loans increased by $4,348m (1.3%) to close at $344,842m, while investment housing loans outstanding increased by $1,608m (0.9%) to reach a closing balance of $172,112m.


Bank loans increased by $5,562m (1.2%) during May to a closing stock of $486,292m. Owner occupied housing loans of banks increased by $3,993m (1.3%) to $320,216m, while investment housing loans increased $1,569m (1.0%) to $166,076m.


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