SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) decreased 0.6% in December 2007 compared with November 2007. The trend series for total value of dwelling finance commitments decreased by 0.2% in December 2007.

The total value of owner occupied housing commitments (seasonally adjusted) rose by 0.5% (up $73m) in December 2007, following a 1.3% rise in November 2007. The increase this month was due to a rise in refinancing of established dwellings (up $260m, 6.6%), partially offset by purchase of established dwellings excluding refinancing (down $162m, 1.7%), construction of dwellings (down $20m, 1.7%) and purchase of new dwellings (down $6m, 0.9%). The trend series in the value of owner occupied commitments increased by 0.4% in December 2007.

The total value of investment housing commitments (seasonally adjusted) decreased by 3.0% (down $204m) in December 2007 compared with November 2007, following a decrease of 2.0% in November 2007. The decrease this month was due to decreases in Purchase of dwellings by individuals for rent or resale (down $238m, 4.3%), construction of dwellings for rent or resale (down $16m, 2.8%), while purchase of dwellings by others for rent or resale rose (up $50m, 7.6%). The trend series in total value of investment housing commitments decreased by 1.8% in December 2007.

Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (seasonally adjusted) increased by 0.1% (up 97) in December 2007 compared with November 2007, following an increase of 3.3% in November 2007. Increases were recorded in refinancing of established dwellings (up 1,079, 5.5%), while decreases were recorded in purchase of established dwellings excluding refinancing (down 787, 2.0%), construction of dwellings (down 100, 2.1%) and purchase of new dwellings (down 95, 3.8%). The number of owner occupied housing commitments (trend) increased 0.6% in December 2007.

The number of owner occupied housing commitments (seasonally adjusted) increased in December 2007 compared with November 2007 in South Australia (up 230, 4.4%), Victoria (up 102, 0.7%) and the Australian Capital Territory (up 6, 0.7%), while decreases were recorded in Queensland (down 273, 1.8%), Western Australia (down 249, 3.0%), Tasmania (down 80, 5.6%) and Northern Territory (down 19, 3.6%). New South Wales remained virtually unchanged. 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 increased from 18.2% in November 2007 to 18.4% in December 2007. The number of fixed rate loan commitments as a percentage of total owner occupied housing finance commitments fell from 24.0% in November 2007 to 23.5% in December 2007. The average loan size for owner occupied housing commitments rose from $236,800 in November 2007 to $238,800 in December 2007.

Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (seasonally adjusted) decreased by 2.1% in December 2007 compared with November 2007, following an increase of 0.6% in November 2007. The trend fell 0.1% in December 2007, the sixth 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 2.1% in December 2007 compared with November 2007, following a decrease of 1.2% in November 2007. The trend rose 0.2% in December 2007, the eighth consecutive monthly increase.

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) fell by 3.8% in December 2007, following a revised decrease of 8.9% in November 2007. The trend series fell by 4.3% in December 2007, the sixth 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) rose by 0.5% in December 2007, following an increase of 4.3% in November 2007. The trend series increased by 0.8% in December 2007.

Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) rose 5.5% in December 2007 compared with November 2007, following a revised increase of 10.3% in November 2007. The trend series rose 2.1% in December 2007.

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 0.8% in December 2007 compared with November 2007, after an increase of 2.5% in November 2007. The trend series rose 1.2% in December 2007.

Non-banks

The number of owner occupied dwellings financed by non-banks (seasonally adjusted) decreased by 3.0% in December 2007 compared with November 2007, after an increase of 7.6% in November 2007. The trend series in the number of owner occupied dwellings financed by non-banks decreased by 2.7% in December 2007, the seventh 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 has continued to decline (down 5.6%).

HOUSING LOAN OUTSTANDINGS

At the end of December 2007, the value of outstanding housing loans financed by authorised deposit-taking institutions was $701,116m, up $9,304m (1.3%) from the November 2007 closing balance. Owner occupied housing loans increased by $6,741m (1.4%) to $475,071m and investment housing loans increased by $2,563m (1.1%) to $226,045m.

Bank loans increased by $8,994m (1.4%) during December 2007 to reach a closing balance of $660,824m. Owner occupied housing loans of banks increased by $6,513m (1.5%) to $442,860 and investment housing loans increased by $2,481m (1.2%) to $217,964m.