Housing Finance Numbers Continue Fall
The June 2018 housing finance figures released recently by the Australian Bureau of Statistics show that the number of loans for housing continue to decline, according to the Real Estate Institute of Australia (REIA).
The June 2018 housing finance figures released recently by the Australian Bureau of Statistics show that the number of loans for housing continues to decline, according to the Real Estate Institute of Australia (REIA).
“Overall the figures for June 2018 show, in trend terms that the number of owner-occupied finance commitments decreased by 0.5 per cent –the ninth consecutive month of decreases. If refinancing is excluded, in trend terms, the number of owner-occupied finance commitments decreased by 0.2 per cent –the tenth consecutive month since an increase,” REIA President Malcolm Gunning said.
“In trend terms decreases were recorded in all states and territories except Tasmania and Queensland, where lending increased by just 0.1 per cent. The largest decrease of 1.8 per cent was in the Australian Capital Territory.
“The value of investment housing commitments decreased by 1.8 per cent in June, in trend terms. The dollar amount approved for the purchase of dwellings by individuals for rent or resale is at the lowest level since July 2013.”
Mr Gunning said in trend terms, the number of established dwellings purchase commitments decreased by 0.4 per cent while the purchase of new dwellings decreased by 1.1 per cent and new dwelling construction fell by 0.5 per cent.
“Whilst the proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased in June to 18.1 per cent, the number of loans to first home buyers decreased by 8.3 per cent.
“The continued decline in housing finance reflects the slowing market which in large part can be attributed to the APRA restrictions and the fallout from the Royal Commission into Banking which has seen an extremely cautious approach being taken by lenders that can be best described as a real estate credit squeeze,” Mr Gunning concluded.