The number of owner-occupier home loans approved in February was steady with the previous month, ending 17 months of increases, says The Real Estate Institute of Australia.

Excluding refinancing, the number of owner-occupier finance commitments eased 0.4%, the third consecutive monthly decrease.

"The ABS data confirms the housing market is stable," said REIA President, Neville Sanders.

The size of the average home loan fell for the third consecutive month, down $15,200 to $357,200 in February, according to CommSec chief economist, Craig James. The monthly decline was the largest on record. 

"The housing sector has shown signs of slowing, however Aussies are still taking out home loans to build homes or buy homes to live in, albeit at a more moderate pace," said James. "Overall it is an encouraging result, suggesting that a soft landing is underway."

Owner-occupier loans are still up 15% on a year ago. Investor loans are down more than 7%.

"The lending figures show that owner-occupiers are the dominant force in the stabilising market in which investor activity has moderated following the introduction of macro prudential measures," said Sanders.

The proportion of first home buyers in the owner-occupied housing finance commitments fell to 14.7%, its lowest level since June 2004