5609.0 - Housing Finance, Australia, May 2007  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 10/07/2007   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 2.7% in May 2007 compared with April 2007. The trend series for total value of dwelling finance commitments increased by 1.4% in May 2007.


The total value of owner occupied housing commitments (seasonally adjusted) rose by 0.2% (up $24m) in May 2007, following a 3.6% rise in April 2007. The increase this month was due to a rise in purchase of new dwellings (up $53m, 7.2%), purchase of established dwellings excluding refinancing (up $49m, 0.5%) and construction of dwellings (up $25m, 2.3%), which more than offset a decrease in refinancing of established dwellings (down $103m, 2.6%). The trend series in the value of owner occupied commitments increased by 1.3% in May 2007.


The total value of investment housing commitments (seasonally adjusted) increased by 8.9% (up $567m) in May 2007 compared with April 2007, following an increase of 1.1% in April 2007. The increase this month was due to a rise in purchase of dwellings by individuals for rent or resale (up $293m, 5.4%), construction of dwellings for rent or resale (up $166m, 52.2%) and purchase of dwellings by others for rent or resale (up $107m, 18.1%). The trend series in total value of investment housing commitments increased by 1.7% in May 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 0.1% (up 75) in May 2007 compared with April 2007, following an increase of 2.1% in April 2007. Increases were recorded in purchase of established dwellings excluding refinancing (up 612, 1.6%) and purchase of new dwellings (up 82, 2.8%) which more than offset decreases in both refinancing of established dwellings (down 589, 3.0%) and construction of dwellings (down 30, 0.7%). The number of owner occupied housing commitments (trend) increased 0.8% in May 2007.


The number of owner occupied housing commitments (seasonally adjusted) increased in May 2007 compared with April 2007 in Victoria (up 242, 1.7%), Queensland (up 220, 1.4%), Tasmania (up 78, 6.3%), Australian Capital Territory (up 40, 4.6%), South Australia (up 38, 0.7%) and the Northern Territory (up 11, 2.3%). Decreases were recorded in Western Australia (down 670, 7.3%) and New South Wales (down 497, 2.6%). 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 decreased from 17.2% in April 2007 to 16.6% in May 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments fell from 20.0% in April 2007 to 17.4% in May 2007. The average loan size for owner occupied housing commitments rose from $227,500 in April 2007 to $234,300 in May 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 1.4% in May 2007 compared with April 2007, following an increase of 1.9% in April 2007. The trend rose 1.3% in May 2007.

Graph: Number of owner occupied dwellings financed excluding refinancing



PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) fell 0.7% in May 2007, following a 1.3% decrease for April 2007. The trend series fell by 0.4% in May 2007.

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 2.8% in May 2007, following a decrease of 2.3% in April 2007. The trend series rose by 1.5% in May 2007 the sixth consecutive monthly increase.

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) remained virtually unchanged in May 2007, following an increase of 2.6% in April 2007. The trend series increased by 0.9% in May 2007, the sixth consecutive monthly increase.

Graph: Purchase of established dwellings including refinancing



Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell by 3.0% in May 2007 compared with April 2007, following an increase of 2.7% in April 2007. The trend series fell by 0.4% in May 2007, the eighth consecutive monthly decrease, albeit at a diminishing rate for the past five months.

Graph: Refinancing



TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 1.0% in May 2007 compared with April 2007, after a 0.8% increase in April 2007. The trend series rose by 0.7% in May 2007.

Graph: Banks



Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) fell by 3.1% in May 2007 compared with April 2007, after an increase of 7.3% in April 2007. The non-bank trend series increased by 1.4% in May 2007.

Graph: Non-banks



HOUSING LOAN OUTSTANDINGS

At the end of May 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $633,043m, down $7,001m (1.1%) from the April 2007 closing balance. Owner occupied housing loans decreased by $5,607m (1.3%) to close at $427,230m, while investment housing loans decreased by $1,394m (0.7%) to reach a closing balance of $205,813m.


Bank loans decreased by $7,457m (1.2%) during May to a closing stock of $595,216m. Owner occupied housing loans of banks decreased by $5,956m (1.5%) to $397,027m, while investment housing loans decreased $1,501m (0.8%) to $198,189m.