SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 1.9% in October 2008 compared with September 2008. The trend series for the total value of dwelling finance commitments excluding alterations and additions decreased 0.4% in October 2008.

The total value of owner occupied housing commitments (seasonally adjusted) rose 2.4% (up $292m) in October 2008, following a revised decrease of 1.3% in September 2008. The increase this month was due to increases in the refinancing of established dwellings (up $264m, 8.2%), the purchase of new dwellings (up $13m, 2.8%), the purchase of established dwellings excluding refinancing (up $9m, 0.1%) and the construction of dwellings (up $5m, 0.5%). The trend series for the value of owner occupied commitments decreased by 0.3% in October 2008.

The total value of investment housing commitments (seasonally adjusted) increased 0.7% (up $36m) in October 2008 compared with September 2008, following a revision resulting in no change in September 2008. The increase this month was due to an increase in the purchase of dwellings by individuals for rent or resale (up $112m, 2.6%), while decreases were recorded for the purchase of dwellings by others for rent or resale (down $75m, 12.6%) and the construction of dwellings for rent or resale (down $2m, 0.4%). The trend series for the total value of investment housing commitments decreased 0.8% in October 2008.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased 1.3% (up 636) in October 2008 compared with September 2008, following a revised decrease of 2.4% in September 2008. Increases were recorded in the refinancing of established dwellings (up 483, 3.3%), the purchase of established dwellings excluding refinancing (up 174, 0.6%) and the purchase of new dwellings (up 59, 3.5%), while a decrease was recorded for the construction of dwellings (down 80, 2.0%). The trend estimates for the total number of owner occupied housing commitments decreased 1.0% in October 2008.

The number of owner occupied housing commitments (seasonally adjusted) increased in October 2008 compared with September 2008 in Western Australia (up 311, 5.1%), Queensland (up 255, 2.6%), Victoria (up 237, 2.1%), South Australia (up 74, 1.9%), the Northern Territory (up 71, 18.7%), the Australian Capital Territory (up 62, 8.8%), and Tasmania (up 41, 4.3%), while a decrease was recorded in New South Wales (down 317, 2.2%).

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments decreased from 19.7% in September 2008 to 19.5% in October 2008. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments decreased from 3.3% in September 2008 to 3.0% in October 2008. This is the lowest level recorded since the series commenced in 1991. The average loan size for owner occupied housing commitments rose from $251,300 in September 2008 to $256,400 in October 2008.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) rose 0.5% in October 2008, following a revised increase of 0.4% in September 2008. The trend fell 0.3% in October 2008, the fifteenth consecutive monthly decrease.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) fell 2.0% in October 2008 compared with September 2008, following a revised increase of 1.6% in September 2008. The trend series fell by 1.6%, the eleventh consecutive monthly decrease.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose 3.5% in October 2008, following a revised increase of 4.3% in September 2008. The trend series rose by 0.4% in October 2008.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) rose 1.6% in October 2008, following a revised decrease of 3.0% in September 2008. The trend series fell 1.0% in October 2008, the eleventh consecutive monthly decrease.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) rose 3.3% in October 2008 compared with September 2008, following a revised decrease of 8.3% in September 2008. The trend series fell 2.5% in October 2008, the ninth consecutive monthly decrease.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) rose 1.3% in October 2008 compared with September 2008, after a revised decrease of 2.5% in September 2008. The trend series fell 0.8% in October 2008, the tenth consecutive monthly decrease.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) rose 1.5% in October 2008 compared with September 2008, after a revised decrease of 1.6% in September 2008. The trend series in the number of owner occupied dwellings financed by non-banks decreased 2.6% in October 2008, the sixteenth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) decreased 4.7% and the trend series decreased 6.0%, the seventeenth consecutive monthly decrease.

HOUSING LOAN OUTSTANDINGS

At the end of October 2008, the value of outstanding housing loans financed by authorised deposit-taking institutions was $802,986m, up $8,959m (1.1%) from the September 2008 closing balance. Owner occupied housing loans financed by authorised deposit-taking institutions increased $6,890m (1.3%) to $548,576m and investment housing loans financed by authorised deposit-taking institutions increased $2,069m (0.8%) to $254,410m.

Bank loans increased $8,620m (1.1%) during October 2008 to reach a closing balance of $760,973m. Owner occupied housing loans of banks increased $6,610m (1.3%) to $514,289m and investment housing loans increased $2,010m (0.8%) to $246,684m.