The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased marginally to 15.1 per cent compared to 14.9 per cent in November.
The latest housing finance figures released by the Australian Bureau of Statistics show a continued increase in owner occupier lending and a decline in investor activity.
The figures for December 2016 show, in trend terms that the number of owner-occupied finance commitments increased by 1.1 per cent. This increase is the similar to that of the last four months. If refinancing is excluded, in trend terms for December, the number of owner-occupied finance commitments increased by 0.5 per cent – the eighteenth consecutive month of increases.
Increases were recorded in all states except Western Australia with the Australian Capital Territory having the largest increase of 1.6 per cent. Western Australia fell by 0.3 per cent. In trend terms, the number of new dwellings purchase commitments increased by 1.3 per cent while new dwelling construction increased by 1.0 per cent and the purchase of established dwellings increased by 1.0 per cent.
The value of investment housing commitments decreased by 2.4 per cent in trend terms. This is the seventh consecutive month of falling investor lending and the lowest monthly figure for the year to December 2015 showing that the increase in mortgage rates for investors and the strengthening of banks’ non-price lending terms in response to supervisory actions is having an impact.
The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased marginally to 15.1 per cent compared to 14.9 per cent in November.
The lending figures show that owner occupiers continue to have a strong presence in the stabilising market and with a consistent decline in investor activity coupled with falling rental returns it is time to review the macro prudential measures.