SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased 7.1% in February 2008 compared with January 2008. The trend series for total value of dwelling finance commitments decreased by 0.2% in February 2008.

The total value of owner occupied housing commitments (seasonally adjusted) fell by 6.0% (down $952m) in February 2008, following a revised 2.3% rise in January 2008. The decrease this month was due to falls in purchase of established dwellings excluding refinancing (down $808m, 8.3%), refinancing of established dwellings (down $160m, 3.6%) and purchase of new dwellings (down $2m, 0.3%). This was slightly offset by a rise in construction of dwellings (up $17m, 1.4%). The trend series in the value of owner occupied commitments decreased by 0.2% in February 2008.

The total value of investment housing commitments (seasonally adjusted) decreased by 9.5% (down $685m) in February 2008 compared with January 2008, following a revised increase of 8.8% in January 2008. The decrease this month was due to decreases in Construction of dwellings for rent or resale (down $517m, 47.1%) and Purchase of dwellings by individuals for rent or resale (down $240m, 4.5%) this was partially offset by a rise in Purchase of dwellings by others for rent or resale (up $72m, 9.1%). The trend series in total value of investment housing commitments decreased by 0.2% in February 2008.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) decreased by 5.9% (down 3,977) in February 2008 compared with January 2008, following a revised increase of 3.1% in January 2008. Decreases were recorded in purchase of established dwellings excluding refinancing (down 2,748, 7.1%), refinancing of established dwellings (down 1,263, 5.7%), while increases were recorded in construction of dwellings (up 27, 0.6%) and purchase of new dwellings (up 7, 0.3%). The number of owner occupied housing commitments (trend) increased 0.1% in February 2008.

The number of owner occupied housing commitments (seasonally adjusted) decreased in February 2008 compared with January 2008 in Western Australia (down 1,010, 11.6%), New South Wales (down 783, 3.9%), Queensland (down 611, 4.2%), South Australia (down 426, 7.4%), Victoria (down 344, 2.1%) and the Australian Capital Territory (down 27, 3.1%), while increases were recorded in Tasmania (up 31, 2.2%) and the Northern Territory (up 3, 0.7%). The trend estimates increased in the New South Wales, Victoria, South Australia and Tasmania while Queensland, Western Australia, the Northern Territory 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 decreased from 18.0% in January 2008 to 17.2% in February 2008. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments rose from 22.3% in January 2008 to 23.8% in February 2008. The average loan size for owner occupied housing commitments fell from $233,900 in January 2008 to $230,000 in February 2008.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) decreased by 5.9% in February 2008 compared with January 2008, following a revised increase of 1.3% in January 2008. The trend fell 0.9% in February 2008, the eighth 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) rose 0.6% in February 2008 compared with January 2008, following a revised increase of 2.2% in January 2008. The trend series recorded no change.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose by 0.3% in February 2008, following a revised decrease of 4.9% in January 2008. The trend series fell by 3.8% in February 2008, the eighth 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 by 6.6% in February 2008, following a revised increase of 3.4% in January 2008. The trend series increased by 0.2% in February 2008, the sixth consecutive monthly increase.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) fell 5.7% in February 2008 compared with January 2008, following a revised increase of 7.0% in January 2008. The trend series rose 2.1% in February 2008, the sixth consecutive monthly increase.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) decreased by 6.1% in February 2008 compared with January 2008, after a revised increase of 4.2% in January 2008. The trend series rose 0.5% in February 2008, the seventh consecutive monthly increase.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased by 4.7% in February 2008 compared with January 2008, after a revised decrease of 2.5% in January 2008. The trend series in the number of owner occupied dwellings financed by non-banks decreased by 2.0% in February 2008, the ninth consecutive monthly decrease. The number of commitments for owner occupied dwellings financed by wholesale lenders n.e.c. (seasonally adjusted) decreased 7.1% and the trend series has continued to decline (down 3.1%).

HOUSING LOAN OUTSTANDINGS

At the end of February 2008, the value of outstanding housing loans financed by authorised deposit-taking institutions was $708,966m, down $553m (0.1%) from the January 2008 closing balance. Owner occupied housing loans decreased by $475m (0.1%) to $480,879m and investment housing loans decreased by $78m (0.0%) to $228,087m.

Bank loans decreased by $1,058m (0.2%) during February 2008 to reach a closing balance of $667,949m. Owner occupied housing loans of banks decreased by $952m (0.2%) to $447,984 and investment housing loans decreased by $106m (0.0%) to $219,965m.