SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased 2.7% in September 2007 compared with August 2007. The trend series for total value of dwelling finance commitments decreased by 0.7% in September 2007

The total value of owner occupied housing commitments (seasonally adjusted) fell by 2.5% (down $379m) in September 2007, following a 1.0% rise in August 2007. The decrease this month was due to a fall in purchase of established dwellings excluding refinancing (down $286m, 3.0%), refinancing of established dwellings (down $85m, 2.2%) and purchase of new dwellings (down $31m, 3.6%) while construction of dwellings rose (up $24m, 2.1%). The trend series in the value of owner occupied commitments decreased by 0.7% in September 2007.

The total value of investment housing commitments (seasonally adjusted) decreased by 3.3% (down $232m) in September 2007 compared with August 2007, following a decrease of 2.2% in August 2007. The decrease this month was due to falls in purchase of dwellings by individuals for rent or resale (down $181m, 3.2%), purchase of dwellings by others for rent or resale (down $27m, 3.6%) and construction of dwellings for rent or resale (down $23m, 4.3%). The trend series in total value of investment housing commitments decreased by 0.6% in September 2007.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) decreased by 2.4% (down 1,553) in September 2007 compared with August 2007, following an increase of 1.4% in August 2007. Decreases were recorded in purchase of established dwellings excluding refinancing (down 1,125, 3.0%), refinancing of established dwellings (down 389, 2.1%) and purchase of new dwellings (down 106, 3.5%), while construction of dwellings rose (up 67, 1.4%). The number of owner occupied housing commitments (trend) decreased 0.9% in September 2007.

The number of owner occupied housing commitments (seasonally adjusted) decreased in September 2007 compared with August 2007 in New South Wales (down 455, 2.5%), Queensland (down 283, 1.9%), South Australia (down 190, 3.7%), the Australian Capital Territory (down 133, 14.5%), Tasmania (down 30, 2.4%) and the Northern Territory (down 4, 0.8%). Increases were recorded in Victoria (up 116, 0.8%) and Western Australia (up 48, 0.6%). The trend estimates increased in the Northern Territory, while all other states and the Australian Capital Territory recorded decreases.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 17.2% in August 2007 to 17.7% in September 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments rose from 17.1% in August 2007 to 19.2% in September 2007. The average loan size for owner occupied housing commitments rose from $239,100 in August 2007 to $239,400 in September 2007.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) decreased by 2.5% in September 2007 compared with August 2007, following an increase of 0.4% in August 2007. The trend fell 0.8% in September 2007.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) increased by 1.4% in September 2007 compared with August 2007, following an increase of 2.7% in August 2007. The trend rose 0.5% in September 2007.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell by 3.5% in September 2007, following an increase of 0.1% in August 2007. The trend series fell by 0.4% in September 2007.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) fell by 2.7% in September 2007, following an increase of 1.3% in August 2007. The trend series decreased by 1.1% in September 2007.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell by 2.1% in September 2007 compared with August 2007, following an increase of 3.9% in August 2007. The trend series fell by 1.3% in September 2007, the eleventh consecutive monthly decrease.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) decreased by 0.4% in September 2007 compared with August 2007, after an increase of 2.0% in August 2007. The trend series fell by 0.7% in September 2007.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased by 10.1% in September 2007 compared with August 2007, after a decrease of 0.9% in August 2007. This fall was driven by a decrease of 12.6% in financing by wholesale lenders n.e.c. The trend series in the number of owner occupied dwellings financed by non-banks decreased by 2.0% in September 2007.

HOUSING LOAN OUTSTANDINGS

At the end of September 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $663,365m, up $7,013m (1.1%) from the August 2007 closing balance. Owner occupied housing loans increased by $5,303m (1.2%) to $447,432m, while investment housing loans increased by $1,710m (0.8%) to $215,933m.

Bank loans increased by $6,372m (1.0%) during September to reach a closing balance of $624,462m. Owner occupied housing loans of banks increased by $4,764m (1.2%) to $416,417m while investment housing loans increased by $1,608m (0.8%) to $208,045m.