The value of new loan commitments for housing rose by 1.8 per cent in November 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics figures.
ABS Chief Economist, Bruce Hockman, said: “Growth in the value of new loan commitments for housing continued to be underpinned by owner occupiers, with the value of new loan commitments for owner occupier housing rising 1.6 per cent in November to record the sixth straight month of growth.
“The value of new loan commitments for investor housing also rose in November, up 2.2 per cent, however, over the longer term this series remains down on recent peaks in activity."
As shown in the chart, the value of new loan approvals to owner occupiers has risen sharply from the recent low in May and is just 4.6% below the previous peak in August, suggesting that price increases are likely to be evident through 2020.
The number of loan commitments to owner occupier first home buyers fell 0.9 per cent in November following a 0.4 per cent fall in October. This was the first back-to-back fall since January 2019. Owner occupier first home buyers accounted for 29.7 per cent of new housing loan commitments to owner occupiers in November.
The value of personal finance fixed term loan commitments fell 1.4 per cent in November following a 2.2 per cent rise in October and were up 1.4 per cent on November 2018.
In trend terms, the value of new loan commitments to businesses for construction rose 0.3 per cent in November. The value of new loan commitments to businesses for the purchase of property fell 2.3 per cent.
Related Articles
