SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased 1.6% in September 2008 compared with August 2008. The trend series for the total value of dwelling finance commitments excluding alterations and additions decreased 1.1% in September 2008.

The total value of owner occupied housing commitments (seasonally adjusted) fell 1.9% (down $228m) in September 2008, following a revised decrease of 1.6% in August 2008. The decrease this month was due to a fall in the refinancing of established dwellings (down $276m, 7.9%), while increases were recorded for purchase of new dwellings (up $30m, 6.7%), the purchase of established dwellings excluding refinancing (up $15m, 0.2%) and the construction of dwellings (up $4m, 0.4%). The trend series for the value of owner occupied commitments decreased by 1.2% in September 2008.

The total value of investment housing commitments (seasonally adjusted) decreased 1.1% (down $58m) in September 2008 compared with August 2008, following a revised decrease of 5.2% in August 2008. The decrease this month was due to a fall in the construction of dwellings for rent or resale (down $146m, 26.4%), while increases were recorded for the purchase of dwellings by individuals for rent or resale (up $58m, 1.4%) and the purchase of dwellings by others for rent or resale (up $30m, 5.2%). The trend series for the total value of investment housing commitments decreased 0.9% in September 2008.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) decreased 2.7% (down 1,295) in September 2008 compared with August 2008, following a revised decrease of 2.1% in August 2008. Decreases were recorded in the refinancing of established dwellings (down 1,291, 8.1%) and the purchase of established dwellings excluding refinancing (down 139, 0.5%), while increases were recorded for the construction of dwellings (up 76, 2.0%) and the purchase of new dwellings (up 59, 3.6%). The trend estimates for the total number of owner occupied housing commitments decreased 1.9% in September 2008.

The number of owner occupied housing commitments (seasonally adjusted) decreased in September 2008 compared with August 2008 in New South Wales (down 301, 2.1%), Victoria (down 297, 2.5%), Western Australia (down 247, 3.9%), South Australia (down 146, 3.6%), Tasmania (down 21, 2.2%) and the Australian Capital Territory (down 6, 0.9%), while increases were recorded in Queensland (up 43, 0.4%) and the Northern Territory (up 20, 5.7%).

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 18.6% in August 2008 to 19.7% in September 2008. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments decreased from 4.6% in August 2008 to 3.3% in September 2008. This is the lowest level recorded since the series commenced in 1991. The average loan size for owner occupied housing commitments rose from $249,300 in August 2008 to $251,300 in September 2008.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) remained unchanged in September 2008, following a revised decrease of 1.5% in August 2008. The trend fell 1.3% in September 2008, the fourteenth consecutive monthly decrease.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) rose 2.0% in September 2008 compared with August 2008, following a revised decrease of 4.5% in August 2008. The trend series fell by 1.9%, the tenth consecutive monthly decrease.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose 3.6% in September 2008, following a revised decrease of 5.0% in August 2008. The trend series fell by 0.8% in September 2008, the fifteenth 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) fell 3.3% in September 2008, following a revised decrease of 1.8% in August 2008. The trend series fell 1.9% in September 2008, the tenth consecutive monthly decrease.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell 8.1% in September 2008 compared with August 2008, following a revised decrease of 3.2% in August 2008. The trend series fell 3.0% in September 2008, the eighth consecutive monthly decrease.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) decreased 2.6% in September 2008 compared with August 2008, after a revised decrease of 1.4% in August 2008. The trend series fell 1.5% in September 2008, the ninth consecutive monthly decrease.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased 3.1% in September 2008 compared with August 2008, after a revised decrease of 7.3% in August 2008. The trend series in the number of owner occupied dwellings financed by non-banks decreased 4.6% in September 2008, the fifteenth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) decreased 6.9% and the trend series decreased 6.7%, the sixteenth consecutive monthly decrease.

HOUSING LOAN OUTSTANDINGS

At the end of September 2008, the value of outstanding housing loans financed by authorised deposit-taking institutions was $784,626m, up $11,235m (1.5%) from the August 2008 closing balance. Owner occupied housing loans financed by authorised deposit-taking institutions increased $8,249m (1.6%) to $534,424m and investment housing loans financed by authorised deposit-taking institutions increased $2,986m (1.2%) to $250,202m.

Bank loans increased $12,626m (1.7%) during September 2008 to reach a closing balance of $742,953m. Owner occupied housing loans of banks increased $8,949m (1.8%) to $500,418m and investment housing loans increased $3,677m (1.5%) to $242,535m.