Housing Finance Declining Across The Board
The December 2017 housing finance figures released today by the Australian Bureau of Statistics show that lending for housing is declining across the board, according to the Real Estate Institute of Australia (REIA).
“Overall the figures for December 2017 show, in trend terms, that the number of owner-occupied finance commitments decreased by 0.3 per cent – the third consecutive month of decreases,” REIA President Malcolm Gunning said.
“If refinancing is excluded, in trend terms, the number of owner-occupied finance commitments also decreased by 0.3 per cent – again the third consecutive month of decrease.
“In trend terms, decreases were recorded in all states and territories except Queensland, the Australian Capital Territory (ACT) and South Australia. The largest decrease of 1.5 per cent was in Western Australia. The ACT had the largest increase of 0.6 per cent and South Australia was flat.
“The value of investment housing commitments decreased by 0.5 per cent in December in trend terms following falls in the previous eleven months.
“In trend terms, the number of established dwellings purchase commitments decreased by 0.3 per cent while new dwelling construction decreased by 0.8 per cent and the purchase of new dwellings decreased by 0.1 per cent.
“The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, decreased marginally to 17.9 per cent in December compared to 18.0 per cent in the previous month.
“Whilst the figures show that home lending is slowing down, first home buyers are continuing to have an increased presence in the market,” concluded Mr Gunning.