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 1.1% in December 2010 compared with November 2010 and the seasonally adjusted series rose 2.5% in December 2010.

The total value of owner occupied housing commitments (trend) rose 1.4% (up $198m) in December 2010, following a rise of 1.5% in November 2010. Rises were recorded in commitments for the purchase of established dwellings (up $162m, 1.3%), the purchase of new dwellings (up $21m, 2.7%) and the construction of dwellings (up $16m, 1.2%). The seasonally adjusted series for the value of owner occupied commitments rose 2.3% in December 2010.

The total value of investment housing commitments (trend) rose 0.5% (up $31m) in December 2010 compared with November 2010, following a rise of 0.1% in November 2010. Rises were recorded in commitments for the purchase of dwellings by individuals for rent or resale (up $27m, 0.5%) and the construction of dwellings for rent or resale rose (up $4m, 0.9%), while commitments for the purchase of dwellings by others for rent or resale was flat (0.0%). The value of investment housing commitments seasonally adjusted rose 3.0% in December 2010.

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

The number of owner occupied housing commitments (trend) rose (up 786, 1.6%) in December 2010 compared with November 2010. Rises were recorded in commitments for the purchase of established dwellings excluding refinancing (up 341, 1.2%), the refinancing of established dwellings (up 337, 2.2%), the construction of dwellings (up 70, 1.4%) and the purchase of new dwellings (up 37, 1.6%). The seasonally adjusted estimate for the total number of owner occupied housing commitments rose 2.1% in December 2010.

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

Between November and December 2010, the number of owner occupied housing commitments (trend) rose in New South Wales (up 323, 2.1%), Victoria (up 190, 1.4%), Queensland (up 127, 1.3%), Western Australia (up 76, 1.3%), South Australia (up 34, 0.9%), the Australian Capital Territory (up 22, 2.2%) and Tasmania (up 6, 0.7%). A fall was recorded in the Northern Territory (down 5, 1.5%). The seasonally adjusted estimates rose in all states.


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 rose from 15.6% in November 2010 to 15.8% in December 2010. Between November and December 2010, the average loan size for first home buyers rose $2,900 to $280,800. The average loan size for all owner occupied housing commitments fell $1,200 to $286,100 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 1.3% in December 2010 compared with November 2010, following a rise of 1.3% in November 2010. The seasonally adjusted series rose 0.4% in December 2010.

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 1.4% in December 2010 compared with November 2010, following a rise of 1.2% in November 2010. The seasonally adjusted series rose 1.0% in December 2010.

Purchase of new dwellings (Tables 1 & 2)

The number of finance commitments for the purchase of new dwellings for owner occupation (trend) rose 1.6% in December 2010 compared with November 2010, following a rise of 1.7% in November 2010. The seasonally adjusted series fell 10.1% in December 2010, following a rise of 9.2% in November 2010.

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 1.6% in December 2010 compared with November 2010, following a rise of 1.7% in November 2010. The seasonally adjusted series rose 3.0% in December 2010.

Refinancing (Tables 1 & 2)

The number of refinancing commitments for owner occupied housing (trend) rose 2.2% in December 2010 compared with November 2010, following a rise of 2.4% in November 2010. The seasonally adjusted series rose 6.2% in December 2010.

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 December 2010 compared with November 2010, following a rise of 0.9% in November 2010. The seasonally adjusted series rose 3.6% in December 2010.

Non-banks (Tables 3 & 4)

The number of commitments for owner occupied dwellings financed by non-banks (trend) rose 5.0% in December 2010, following a rise of 5.7% in November 2010. The seasonally adjusted series fell 5.5% in December 2010, after increasing by more than 11% in each of the previous two months. The number of commitments for owner occupied dwellings financed by permanent building societies (trend) rose 6.2%. The seasonally adjusted series rose 9.6% in December 2010.

HOUSING LOAN OUTSTANDINGS

(Table 12)

At the end of December 2010, the value of outstanding housing loans financed by authorised deposit-taking institutions (ADIs) was $1,051,057m, up $7,699m (0.7%) from the November 2010 closing balance. Owner occupied housing loan outstandings financed by ADIs rose $5,808m (0.8%) to $733,587m and investment housing loans financed by ADIs rose $1,891m (0.6%) to $317,470m.

Bank housing loan outstandings rose $7,921m (0.8%) during December 2010 to reach a closing balance of $999,669m. Owner occupied housing loan outstandings of banks rose $6,075m (0.9%) to $692,272m and investment housing loan outstandings of banks rose $1,846m (0.6%) to $307,397m.