SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 1.7% in October 2007 compared with September 2007. The trend series for total value of dwelling finance commitments decreased by 1.0% in October 2007.

The total value of owner occupied housing commitments (seasonally adjusted) rose by 1.1% (up $169m) in October 2007, following a 1.8% fall in September 2007. The increase this month was due to a rise in purchase of established dwellings excluding refinancing (up $314m, 3.4%) and construction of dwellings (up $48m, 4.1%), partially offset by decreases in purchase of new dwellings (down $108m, 13.3%) and refinancing of established dwellings (down $85m, 2.3%). The trend series in the value of owner occupied commitments decreased by 0.7% in October 2007.

The total value of investment housing commitments (seasonally adjusted) increased by 2.9% (up $195m) in October 2007 compared with September 2007, following a decrease of 2.4% in September 2007. The increase this month was due to increases in construction of dwellings for rent or resale (up $119m, 22.6%) and purchase of dwellings by others for rent or resale (up $79m, 10.5%), slightly offset by a decrease in purchase of dwellings by individuals for rent or resale (down $3m, 0.1%). The trend series in total value of investment housing commitments decreased by 1.4% in October 2007.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) decreased by 0.7% (down 463) in October 2007 compared with September 2007, following a decrease of 2.0% in September 2007. Decreases were recorded in refinancing of established dwellings (down 707, 3.9%) and purchase of new dwellings (down 278, 9.4%), partially offset by increases in purchase of established dwellings excluding refinancing (up 401, 1.1%) and construction of dwellings (up 121, 2.6%). The number of owner occupied housing commitments (trend) decreased 0.9% in October 2007.

The number of owner occupied housing commitments (seasonally adjusted) decreased in October 2007 compared with September 2007 in Queensland (down 403, 2.7%), Western Australia (down 268, 3.2%), Victoria (down 59, 0.4%) and South Australia (down 42, 0.8%). Increases were recorded in New South Wales (up 192, 1.1%), the Australian Capital Territory (up 62, 7.9%), Tasmania (up 55, 4.5%) and the Northern Territory (up 14, 2.8%). The trend estimates increased in the Northern Territory, while all other states and the Australian Capital Territory recorded decreases.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 17.7% in September 2007 to 18.7% in October 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments rose from 19.2% in September 2007 to 21.0% in October 2007. The average loan size for owner occupied housing commitments rose from $239,400 in September 2007 to $240,300 in October 2007.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) increased by 0.5% in October 2007 compared with September 2007, following a decrease of 2.0% in September 2007. The trend fell 0.7% in October 2007.

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (seasonally adjusted) increased by 2.6% in October 2007 compared with September 2007, following an increase of 1.4% in September 2007. The trend rose 1.1% in October 2007.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell by 9.4% in October 2007, following a decrease of 3.4% in September 2007. The trend series fell by 2.1% in October 2007.

Purchase of established dwellings (including refinancing)

The number of finance commitments for the purchase of established dwellings for owner occupation (seasonally adjusted) fell by 0.6% in October 2007, following a decrease of 2.2% in September 2007. The trend series decreased by 1.1% in October 2007.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell by 3.9% in October 2007 compared with September 2007, following a decrease of 2.0% in September 2007. The trend series fell by 1.5% in October 2007; the twelfth consecutive monthly decrease.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 2.3% in October 2007 compared with September 2007, after a decrease of 0.2% in September 2007. The trend series fell by 0.1% in October 2007; the fifth consecutive monthly decrease.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased by 13.5% in October 2007 compared with September 2007, after a decrease of 8.8% in September 2007. This fall was driven by a decrease of 20.3% in financing by wholesale lenders n.e.c. . The trend series in the number of owner occupied dwellings financed by non-banks decreased by 4.7% in October 2007.

HOUSING LOAN OUTSTANDINGS

At the end of October 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $674,173m, up $10,704m (1.6%) from the September 2007 closing balance. Owner occupied housing loans increased by $7,772m (1.7%) to $455,318m and investment housing loans increased by $2,932m (1.4%) to $218,855m.

Bank loans increased by $10,059m (1.6%) during October to reach a closing balance of $634,521m. Owner occupied housing loans of banks increased by $7,291m (1.8%) to $423,708m and investment housing loans increased by $2,768m (1.3%) to $210,813m.