5609.0 - Housing Finance, Australia, Feb 2007  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 11/04/2007   
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SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 3.3% in February 2007 compared with January 2007. The trend series for total value of dwelling finance commitments increased by 1.5% in February 2007.


The total value of owner occupied housing commitments (seasonally adjusted) rose by 0.9% (up $126m) in February 2007, following a 1.4% rise in January 2007. An increase was recorded for purchase of established dwellings excluding refinancing (up $144m, 1.7%) and purchase of new dwellings (up $34m, 4.8%) which more than offset decreases in refinancing of established dwellings (down $36m, -0.9%) and construction of dwellings (down $16m, -1.4%). The trend series in the value of owner occupied commitments increased by 0.8% in February 2007.


The total value of investment housing commitments (seasonally adjusted) increased by 8.9% (up $541m) in February 2007 compared with January 2007, following a revised increase of 2.7% in January 2007. The increase this month was due to a rise in purchase of dwellings by individuals for rent or resale (up $302m, 6.2%) and purchase of dwellings by others for rent or resale (up $251m, 35.5%), more than offsetting a decrease in construction of dwellings for rent or resale (down $12m, -2.6%). The trend series in total value of investment housing commitments increased by 3.1% in February 2007.

INVESTMENT HOUSING - TOTAL
Graph: Investment  Housing - Total



Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased by 0.3% (up 166) in February 2007 compared with January 2007, following a revised increase of 0.5% in January 2007. Increases were recorded in purchase of established dwellings excluding refinancing (up 696, 1.9%) and purchase of new dwellings (up 26, 0.9%) which more than offset decreases in refinancing of established dwellings (down 478, -2.5%) and construction of dwellings (down 78, -1.7%), The number of owner occupied housing commitments (trend) increased 0.2% in February 2007.


The number of owner occupied housing commitments (seasonally adjusted) increased in February 2007 compared with January 2007 in Victoria (up 287, 2.1%), Queensland (up 248 , 1.7%), New South Wales (up 179, 1.0%), South Australia (up 164, 3.2%) and the Australian Capital Territory (up 37, 4.9%). Decreases were recorded in Western Australia (down 89, -1.1%), the Northern Territory (down 38, -7.6%) and Tasmania (down 24, -2.0%).


The trend estimates increased in New South Wales, Victoria, Queensland and South Australia. All other states and territories recorded decreases.


In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments decreased from 17.7% in January 2007 to 17.5% in February 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments fell from 20.5% in January 2007 to 20.4% in February 2007. The average loan size for owner occupied housing commitments rose from $223,700 in January 2007 to $224,800 in February 2007.

Number of Owner Occupied Dwellings Financed
Graph: Number of Owner Occupied Dwellings Financed



Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) increased by 1.5% in February 2007 compared with January 2007, following a revised increase of 0.9% in January 2007. The trend rose 0.7% in February 2007.

Graph: Number of owner occupied dwellings financed excluding refinancing



PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of construction commitments for owner occupation (seasonally adjusted) fell 1.7% in February 2007, following a revised 0.9% increase of January 2007. The trend series remained virtually unchanged for the fourth consecutive month.

Graph: Construction of dwellings


Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose by 0.9% in February 2007, following a revised increase of 5.6% in January 2007. The trend series rose by 0.4% in February 2007.

Graph: Purchase of new dwellings


Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) rose 0.4% in February 2007, following a revised increase of 0.2% in January 2007. The trend series increased by 0.2% in February 2007.

Graph: Purchase of established dwellings including refinancing


Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell by 2.5% in February 2007 compared with January 2007, following a revised decrease of 0.4% in January 2007. The trend series fell by 0.8% in February 2007, the fifth consecutive monthly decrease.

Graph: Refinancing



TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 0.3% in February 2007 compared with January 2007, after a revised 0.5% increase in January 2007. The trend series rose by 0.5% in February 2007.

Graph: Banks


Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) rose by 0.1% in February 2007 compared with January 2007, after a revised increase of 0.7% in January 2007. The non-bank trend series decreased by 0.9% in February 2007, the eighth consecutive monthly decrease.

Graph: Non-banks



HOUSING LOAN OUTSTANDINGS

At the end of February 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $629,788m, down $1,328m (-0.2%) from the January 2007 closing balance. Owner occupied housing loans decreased by $1,486m (-0.3%) to close at $425,951m, while investment housing loans increased by $158m (0.1%) to reach a closing balance of $203,837m.


Bank loans decreased by $1,562m (-0.3%) during February to a closing stock of $593,197m. Owner occupied housing loans of banks decreased by $1,648m (-0.4%) to $396,273m, while investment housing loans increased $86m to $196,924m.