5609.0 - Housing Finance, Australia, Dec 2008 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 11/02/2009   
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SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 5.9% in December 2008 compared with November 2008. The trend series for the total value of dwelling finance commitments excluding alterations and additions increased 0.8% in December 2008.

The total value of owner occupied housing commitments (seasonally adjusted) rose 7.1% (up $892m) in December 2008, following a revised increase of 1.6% in November 2008. The increase this month was due to increases in the purchase of established dwellings excluding refinancing (up $386m, 5.2%), the refinancing of established dwellings (up $343m, 9.5%), the value of the construction of dwellings (up $88m, 9.0%) and the purchase of new dwellings (up $75m, 13.3%). The trend series for the value of owner occupied commitments increased by 1.7% in December 2008.

The total value of investment housing commitments (seasonally adjusted) increased 2.9% (up $147m) in December 2008 compared with November 2008, following a revised decrease of 6.8% in November 2008. The increase this month was due to increases in the purchase of dwellings by individuals for rent or resale (up $233m, 5.8%) and the construction of dwellings for rent or resale (up $36m, 9.2%), while a decrease was recorded for the purchase of dwellings by others for rent or resale (down $123m, 22.7%). The trend series for the total value of investment housing commitments decreased 1.3% in December 2008.

INVESTMENT HOUSING - TOTAL
Graph: INVESTMENT HOUSING - TOTAL



Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased 6.4% (up 3,164) in December 2008 compared with November 2008, following a revised increase of 1.8% in November 2008. Increases were recorded in the purchase of established dwellings excluding refinancing (up 1,516, 5.4%), the refinancing of established dwellings (up 961, 6.1%), the construction of dwellings (up 387, 9.9%) and the purchase of new dwellings (up 299, 15.1%). The trend estimates for the total number of owner occupied housing commitments rose 1.3% in December 2008.

The number of owner occupied housing commitments (seasonally adjusted) increased in all states and territories in December 2008 compared with November 2008: New South Wales (up 1,617, 10.8%), Queensland (up 614, 5.9%), Victoria (up 600, 5.2%), South Australia (up 433, 10.0%), Western Australia (up 308, 5.1%), the Australian Capital Territory (up 222, 31.0%), Tasmania (up 42, 3.9%) and the Northern Territory (up 16, 3.9%). The trend estimates increased in all states and territories, while Western Australia recorded a slight decrease.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 23.6% in November 2008 to 25.4% in December 2008. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments decreased from 2.5% in November 2008 to 1.9% in December 2008. This is the lowest level recorded since the series commenced in 1991. The average loan size for owner occupied housing commitments rose from $253,800 in November 2008 to $257,400 in December 2008.

Graph: Number of Owner Occupied Dwellings Financed


Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) rose 6.5% in December 2008 compared with November 2008, following a revised increase of 1.9% in November 2008. The trend rose 1.6% in December 2008.

Graph: Number of owner occupied dwellings financed excluding refinancing


PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) rose 9.9% in December 2008 compared with November 2008, following a revised decrease of 1.0% in November 2008. The trend series rose 1.1%.

Graph: Construction of dwellings


Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose 15.1% in December 2008 compared with November 2008, following a revised increase of 8.6% in November 2008. The trend series rose 4.7% in December 2008.

Graph: Purchase of new dwellings


Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) rose 5.6% in December 2008 compared with November 2008, following a revised increase of 1.7% in November 2008. The trend series rose 1.1% in December 2008.

Graph: Purchase of established dwellings including refinancing


Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) rose 6.1% in December 2008 compared with November 2008, following a revised increase of 1.5% in November 2008. The trend series rose 0.7% in December 2008.

Graph: Refinancing


TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) rose 6.7% in December 2008 compared with November 2008, after a revised increase of 2.5% in November 2008. The trend series rose 1.6% in December 2008.

Graph: Banks


Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) rose 3.4% in December 2008 compared with November 2008, after a revised decrease of 3.8% in November 2008. The trend series in the number of owner occupied dwellings financed by non-banks decreased 1.3% in December 2008, the eighteenth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) increased 2.0%, while the trend series decreased 2.9%, the twentieth consecutive monthly decrease.

Graph: Non-banks


HOUSING LOAN OUTSTANDINGS

At the end of December 2008, the value of outstanding housing loans financed by authorised deposit-taking institutions was $821,727m, up $9,800m (1.2%) from the November 2008 closing balance. Owner occupied housing loans financed by authorised deposit-taking institutions increased $7,286m (1.3%) to $563,091m and investment housing loans financed by authorised deposit-taking institutions increased $2,514m (1.0%) to $258,636m.

Bank loans increased $9,377m (1.2%) during December 2008 to reach a closing balance of $779,031m. Owner occupied housing loans of banks increased $6,922m (1.3%) to $527,754m and investment housing loans increased $2,455m (1.0%) to $251,277m.