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.

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.

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.

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%.

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.

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.

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.

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.

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.

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.