October Housing Finance Update

9 December 2016

The October figures for home loans released by the ABS today showed a further decline in the number of new loan commitments by 0.3% with a drop in owner occupied housing of -0.5% but an increase in investment housing of 1.5%. The number of owner occupied housing commitments excluding refinancing (trend) fell 0.8% in October 2016, following a fall of 0.9% in September 2016, however the value of these loans increased by 0.3%. Similar falls were also seen in housing commitments for construction by owner occupiers. Total lending fell in NSW (-2.3 per cent), SA (-1.9 per cent ), WA (-0.2 per cent) and NT (-6.3 per cent). It was flat in Victoria but rose 1.7 per cent in Queensland, 3 per cent in Tasmania and 6.1 per cent in ACT. The portion of First Home buyers in the market increased to represent 13.7% of all dwellings financed, up from 13.1% last month and 12.9% last October. The value of all loans issued over the past 12 months to Owner Occupiers and Investors (excluding Owner Occupier re-financing) compared to the previous 12 months is down -3.9%. Investor loans written in the last 12 months are actually down -12.7% on loans written in the previous 12 months. Overall, these figures show that APRA’s attempts to slow credit growth continue to have an influence on the overall market. See full ABS release