ABS 5609.0 - Housing Finance, Australia, Aug 2013. Home loans fell 4% in August.
ABS 5609.0 - Housing Finance, Australia, Aug 2013. Home loans fell 4% in August.; Mortgage committments weaker than expected as investors keep first home buyers out of market
Tweet Topic Started: 14 Oct 2013, 12:25 PM (613 Views)
No. of dwelling commitments, Owner occupied housing
Quote:
AUGUST KEY POINTS
VALUE OF DWELLING COMMITMENTS
August 2013 compared with July 2013:
The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.5%. Investment housing commitments rose 0.8% and owner occupied housing commitments rose 0.4%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.2%.
NUMBER OF DWELLING COMMITMENTS
August 2013 compared with July 2013:
In trend terms, the number of commitments for owner occupied housing finance rose 0.6%. In trend terms, the number of commitments for the purchase of established dwellings rose 0.7%, the number of commitments for the purchase of new dwellings rose 0.3% and the number of commitments for the construction of dwellings rose 0.1%. In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 13.7% in August 2013 from 14.7% in July 2013.
Historically high levels of investor activity are keeping first home buyers out of the housing market, resulting in a fall in home loan approvals.
The number of home loans approved in August fell 3.9 per cent, the Australian Bureau of Statistics said, weaker than the 2.5 per cent fall economists had expected.
The figures show first home buyers are doing it tough, JP Morgan economist Tom Kennedy said.
But the August fall may be a one-off, Mr Kennedy said.
''We have had a very good run so far this year, seven consecutive positive prints, so today's figure could more or less be consumers taking a breather,'' he said.
''Auction clearance rates are still very high, prices are still moving higher, all the indicators are suggesting that this data will continue to move higher over the coming months.''
Mr Kennedy said one positive sign in the data was the pickup in loans for construction, which increased 2.2 per cent.
The August housing finance approvals fall was the first in seven months.
CommSec chief economist Craig James the housing sector has been strong all year and one month's fall is not that significant.
''It's August data ahead of a September federal election and it may have been a number of buyers were holding off until the election was out of the way,'' he said.
''We've had a bit of a correction in the month of August.
''The auction results over the past weekend in Sydney and Melbourne were reasonably buoyant, there's no anecdotal evidence the housing market is losing pace.''
The latest housing finance data released by the Australian Bureau of Statistics (ABA) shows new home lending slipped back in August.
In seasonally adjusted terms, the total value of dwelling finance commitments – excluding alterations and additions – fell 1.2% from July, 2013.
Housing Industry Association (HIA) senior economist Shane Garrett said the slight decline on July’s result should serve as a ‘timely warning’ against complacency towards Australia’s housing market.
"Compared with 12 months ago, new home lending activity has increased markedly. However, growth has completely stalled over the past six months even though activity was already rather low by historical standards," says Garrett.
"The patchiness we are continuing to see in areas of the home loans market means that another interest rate cut from the RBA before the end of 2013 is important in order to ensure that the market recovery fires on all cylinders.”
In the three months to August, the number of loans to owner occupiers for the construction and purchase of new homes was 13.3% higher than the same period in 2012. The number of loans for the purchase of new homes was 0.6% higher in the three months to August.
In August 2013, the seasonally adjusted number of housing finance commitments (for both new and established owner-occupied housing) increased in NSW (+2.3%), Victoria (+2.2%) and Tasmania (+0.1%). Lending declined by 3.2% in Queensland, 8.6% in South Australia and 1.3% in Western Australia over the same period.
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