SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 0.5% in November 2007 compared with October 2007. The trend series for total value of dwelling finance commitments decreased by 0.3% in November 2007.

The total value of owner occupied housing commitments (seasonally adjusted) rose by 2.0% (up $298m) in November 2007, following a 0.9% rise in October 2007. The increase this month was due to a rise in refinancing of established dwellings (up $221m, 5.9%) and purchase of established dwellings excluding refinancing (up $169m, 1.8%), partially offset by decreases in purchase of new dwellings (down $48m, 6.8%) and construction of dwellings (down $44m, 3.6%). The trend series in the value of owner occupied commitments increased by 0.3% in November 2007.

The total value of investment housing commitments (seasonally adjusted) decreased by 2.8% (down $193m) in November 2007 compared with October 2007, following an increase of 2.5% in October 2007. The decrease this month was due to decreases in purchase of dwellings by others for rent or resale (down $122m, 15.7%) and construction of dwellings for rent or resale (down $72m, 11.3%). Purchase of dwellings by individuals for rent or resale remained virtually unchanged (up $1m). The trend series in total value of investment housing commitments decreased by 1.8% in November 2007.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased by 4.0% (up 2,553) in November 2007 compared with October 2007, following a decrease of 0.5% in October 2007. Increases were recorded in refinancing of established dwellings (up 1,867, 10.6%) and purchase of established dwellings excluding refinancing (up 865, 2.3%) partially offset by a decrease in purchase of new dwellings (down 198, 7.3%). Construction of dwellings remained virtually unchanged. The number of owner occupied housing commitments (trend) increased 0.2% in November 2007.

The number of owner occupied housing commitments (seasonally adjusted) increased in November 2007 compared with October 2007 in New South Wales (up 720, 3.9%), Victoria (up 690, 4.7%), Queensland (up 508, 3.5%), Western Australia (up 326, 4.0%), South Australia (up 142, 2.8%), Tasmania (up 130, 9.9%) and the Northern Territory (up 10, 2.0%), slightly offset by a decrease in the Australian Capital Territory (down 3, 0.4%). The trend estimates increased in the New South Wales, Victoria, Tasmania and Northern Territory, while Queensland, the Australian Capital Territory and Western Australia recorded decreases. South Australia remained virtually unchanged.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments decreased from 18.7% in October 2007 to 18.3% in November 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments rose from 21.0% in October 2007 to 24.0% in November 2007. The average loan size for owner occupied housing commitments fell from $240,300 in October 2007 to $236,600 in November 2007.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) increased by 1.5% in November 2007 compared with October 2007, following an increase of 1.1% in October 2007. The trend recorded virtually no change in November 2007.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) recorded virtually no change in November 2007 compared with October 2007, following an increase of 1.7% in October 2007. The trend rose 0.9% in November 2007.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell by 7.3% in November 2007, following a decrease of 7.6% in October 2007. The trend series fell by 3.5% in November 2007; the fifth consecutive monthly decrease.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) rose by 4.9% in November 2007, following a decrease of 0.3% in October 2007. The trend series increased by 0.3% in November 2007.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) rose 10.6% in November 2007 compared with October 2007, following a decrease of 4.5% in October 2007. The trend series rose 0.7% in November 2007; the second consecutive monthly increase after 11 months of successive monthly decreases.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 2.4% in November 2007 compared with October 2007, after an increase of 2.0% in October 2007. The trend series rose 0.9% in November 2007.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) increased by 12.0% in November 2007 compared with October 2007, after a decrease of 11.4% in October 2007. The trend series in the number of owner occupied dwellings financed by non-banks decreased by 2.9% in November 2007; the sixth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) has increased 12.7%, however the trend series has continued to decline (down 5.6%).

HOUSING LOAN OUTSTANDINGS

At the end of November 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $691,812m, up $17,628m (2.6%) from the October 2007 closing balance. Owner occupied housing loans increased by $13,012m (2.9%) to $468,330m and investment housing loans increased by $4,616m (2.1%) to $223,482m.

Bank loans increased by $17,309m (2.7%) during November to reach a closing balance of $651,830m. Owner occupied housing loans of banks increased by $12,639m (3.0%) to $436,347m and investment housing loans increased by $4,670m (2.2%) to $215,483m.