The latest housing finance figures released by the Australian Bureau of Statistics reflect declining lending activity.
The latest housing finance figures released by the Australian Bureau of Statistics reflect declining lending activity. The figures for June 2015 show, in trend terms, that the number of owner-occupied finance commitments fell by 0.6 per cent. This fall is the third consecutive monthly fall and follows eleven months of increases. If refinancing is excluded, in trend terms for June, the number of owner-occupied finance commitments fell by 1.0 per cent. Decreases were recorded in all states and territories except the Australian Capital Territory and Queensland. The Australian Capital Territory increased by 0.3 per cent and Queensland remained flat. The largest decrease was recorded in Tasmania – down 2.0 per cent. In trend terms, the number of new dwellings purchase commitments increased by 0.7 per cent while new dwelling construction decreased by 0.9 per cent and the purchase of established dwellings decreased by 0.6 per cent. Whilst the value of investment housing commitments again increased it was by a more modest 0.2 per cent. The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased marginally to 15.9 per cent compared to 15.6 per cent in May. The lending figures indicate a market that is moderating, including the hotspots of Sydney and Melbourne, with June May 2015 being the fifth consecutive month of modest drops in lending levels if refinancing is excluded. The declining housing lending suggest any concerns of an over heating property market lead by investor activity should be laid to rest.