SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 9.2% in June 2007 compared with May 2007. The trend series for total value of dwelling finance commitments increased by 2.6% in June 2007.

The total value of owner occupied housing commitments (seasonally adjusted) rose by 6.6% (up $1,015m) in June 2007, following a 0.1% rise in May 2007. The increase this month was due to a rise in purchase of established dwellings excluding refinancing (up $792m, 8.3%), purchase of new dwellings (up $108m, 13.5%), refinancing of established dwellings (up $58m, 1.5%) and construction of dwellings (up $57m, 5.2%). The trend series for the value of owner occupied commitments increased by 2.0% in June 2007.

The total value of investment housing commitments (seasonally adjusted) increased by 14.8% (up $1,045m) in June 2007 compared with May 2007, following an increase of 9.8% in May 2007. The increase this month was due to a rise in purchase of dwellings by individuals for rent or resale (up $581m, 10.0%), purchase of dwellings by others for rent or resale (up $412m, 57.5%) and construction of dwellings for rent or resale (up $52m, 10.3%). The trend series for total value of investment housing commitments increased by 3.9% in June 2007.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased by 1.1% (up 708) in June 2007 compared with May 2007, following an increase of 0.2% in May 2007. Increases were recorded in purchase of established dwellings excluding refinancing (up 738, 1.9%) and purchase of new dwellings (up 169, 5.7%) and construction of dwellings (up 143, 3.2%), which more than offset a decrease in refinancing of established dwellings (down 342, 1.8%). The number of owner occupied housing commitments (trend) increased 0.8% in June 2007.

The number of owner occupied housing commitments (seasonally adjusted) increased in June 2007 compared with May 2007 in Western Australia (up 335, 3.9%), New South Wales (up 126, 0.7%), Victoria (up 76, 0.5%), South Australia (up 55, 1.0%), the Australian Capital Territory (up 18, 2.1%), the Northern Territory (up 5, 0.9%) and Tasmania (up 1, 0.1%). A decrease was recorded in Queensland (down 114, 0.7%). The trend estimates increased in all states and the Australian Capital Territory.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 16.6% in May 2007 to 16.7% in June 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments fell from 17.4% in May 2007 to 17.0% in June 2007. The average loan size for owner occupied housing commitments rose from $234,300 in May 2007 to $244,600 in June 2007.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) increased by 2.2% in June 2007 compared with May 2007, following an increase of 1.9% in May 2007. The trend rose 1.4% in June 2007.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) rose 3.2% in June 2007, following a 0.1% decrease for May 2007. The trend series rose by 0.2% in June 2007.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose by 5.7% in June 2007, following an increase of 2.7% in May 2007. The trend series rose by 1.9% in June 2007, the seventh consecutive monthly increase.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) rose by 0.7% in June 2007, following an increase of 0.1% in May 2007. The trend series increased by 0.8% in June 2007, the seventh consecutive monthly increase.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell by 1.8% in June 2007 compared with May 2007, following a decrease of 4.0% in May 2007. The trend series fell by 0.7% in June 2007, the ninth consecutive monthly decrease.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 1.3% in June 2007 compared with May 2007, after a 1.0% increase in May 2007. The trend series rose by 0.7% in June 2007.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) remained virtually unchanged in June 2007 compared with May 2007, after a decrease of 3.0% in May 2007. The trend series increased by 1.0% in June 2007.

HOUSING LOAN OUTSTANDINGS

At the end of June 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $644,366m, up $11,302m (1.8%) from the May 2007 closing balance. Owner occupied housing loans increased by $6,123m (1.4%) to close at $433,372m, while investment housing loans increased by $5,179m (2.5%) to reach a closing balance of $210,994m.

Bank loans increased by $11,048m (1.9%) during June to a closing stock of $606,264m. Owner occupied housing loans of banks increased by $5,962m (1.5%) to $402,989m, while investment housing loans increased $5,086m (2.6%) to $203,275m.