SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased 6.1% in May 2008 compared with April 2008. The trend series for the total value of dwelling finance commitments excluding alterations and additions decreased 3.6% in May 2008.

The total value of owner occupied housing commitments (seasonally adjusted) fell 5.7% (down $766m) in May 2008, following a revised decrease of 4.8% in April 2008. The decrease this month was due to falls in the purchase of established dwellings excluding refinancing (down $434m, 5.6%), refinancing of established dwellings (down $218m, 5.6%), construction of dwellings (down $60m, 5.2%) and the purchase of new dwellings (down $55m, 10.9%), The trend series for the value of owner occupied commitments decreased by 3.7% in May 2008.

The total value of investment housing commitments (seasonally adjusted) decreased 6.8% (down $403m) in May 2008 compared with April 2008, following a revised increase of 0.7% in April 2008. The decrease this month was due to falls in the purchase of dwellings by individuals for rent or resale (down $366m, 7.9%) and the purchase of dwellings by others for rent or resale (down $111m, 15.8%) while construction of dwellings for rent or resale rose (up $73m, 12.0%). The trend series for the total value of investment housing commitments decreased 3.4% in May 2008.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) decreased 7.9% (down 4,478) in May 2008 compared with April 2008, following a revised decrease of 4.2% in April 2008. Decreases were recorded in the purchase of established dwellings excluding refinancing (down 2,174, 7.0%), refinancing of established dwellings (down 1,812, 9.6%), purchase of new dwellings (down 261, 13.5%) and construction of dwellings (down 231, 5.0%). The trend estimates for the total number of owner occupied housing commitments decreased 4.2% in May 2008.

The number of owner occupied housing commitments (seasonally adjusted) decreased in all states and territories in May 2008 compared with April 2008; Victoria (down 1,323, 9.5%), New South Wales (down 1,248, 7.4%), Queensland (down 1,062, 8.9%), Western Australia (down 389, 5.7%), Tasmania (down 247, 19.4%), South Australia (down 243, 5.1%), the Australian Capital Territory (down 60, 8.0%) and the Northern Territory (down 22, 4.9%). The trend estimates decreased in all states and territories.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 16.9% in April 2008 to 17.3% in May 2008. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments decreased from 17.5% in April 2008 to 13.0% in May 2008. The average loan size for owner occupied housing commitments rose from $236,900 in April 2008 to $243,800 in May 2008.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) decreased 7.1% in May 2008 compared with April 2008, following a revised decrease of 5.5% in April 2008. The trend fell 4.4% in May 2008, the eleventh 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 5.0% in May 2008 compared with April 2008, following a revised increase of 0.6% in April 2008. The trend series fell by 1.3%.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell 13.5% in May 2008, following a revised decrease of 2.3% in April 2008. The trend series fell by 5.0% in May 2008, the eleventh consecutive monthly decrease.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) fell 8.0% in May 2008, following a revised decrease of 4.7% in April 2008. The trend series fell by 4.5% in May 2008.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell 9.6% in May 2008 compared with April 2008, following a revised decrease of 1.5% in April 2008. The trend series fell 3.8% in May 2008.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) decreased 6.3% in May 2008 compared with April 2008, after a revised decrease of 3.4% in April 2008. The trend series fell 3.4% in May 2008.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased 17.9% in May 2008 compared with April 2008, after a revised decrease of 8.7% in April 2008. The trend series in the number of owner occupied dwellings financed by non-banks decreased 9.3% in May 2008, the twelfth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) decreased 24.3%, while the trend series decreased 9.9%.

HOUSING LOAN OUTSTANDINGS

At the end of May 2008, the value of outstanding housing loans financed by authorised deposit-taking institutions was $739,815m, up $9,083m (1.2%) from the April 2008 closing balance. Owner occupied housing loans financed by authorised deposit-taking institutions increased $6,065m (1.2%) to $502,752m and investment housing loans financed by authorised deposit-taking institutions increased $3,018m (1.3%) to $237,063m.

Bank loans increased $8,722m (1.3%) during May 2008 to reach a closing balance of $697,546m. Owner occupied housing loans of banks increased $5,801m (1.3%) to $468,933 and investment housing loans increased $2,921m (1.3%) to $228,613m.