news

Lending slowdown challenges boom time image

By Staff Reporter

Although talk of a housing market surge in cities like Sydney and Melbourne is widespread, recent statistics from the Australian Bureau of Statistics suggest that market activity is slowing down. 

The figures show four consecutive months of owner-occupier finance commitments slipping despite the perception of a housing boom in the New South Wales and Victoria capital cities.

The REIA said the latest Australian Bureau of Statistics (ABS) figures for September 2014 show, in trend terms, that the number of owner-occupied finance commitments fell by 0.2 per cent.

If refinancing is excluded, in trend terms for September, the number of owner-occupied finance commitments fell by 0.4 per cent.

REIA president, Peter Bushby said that the largest drop was in South Australia at 0.4 per cent.

He also reported that decreases were recorded in Queensland, Western Australia and Victoria.

However, not all states have followed this trend.

“The Northern Territory saw the biggest rise at 3.2 per cent,” Mr Bushby said.

Mr Bushby said the September 2014 lending figures indicated a moderating market, with September being the eighth consecutive month of modest drops in lending levels if refinancing is excluded.

“The REIA believes there is no need for the introduction of macroprudential tools – to do so may give rise to unintended consequences,” he added.

Mr Bushby said in trend terms, the number of new dwellings purchase commitments increased by 1.7 per cent, while new dwelling construction decreased 0.2 per cent and the purchase of established dwellings decreased by 0.3 per cent.

“The value of investment housing commitments again increased but by 1.7 per cent,” he said.

“The proportion of first home buyers as part of the total owner-occupied housing finance commitments increased marginally to 12 per cent compared to the record lowest 11.8 per cent in August. However, the ABS advises caution in using this data due to reporting difficulties.”

 

 

Lending slowdown challenges boom time image
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%