AU: Home Loans


Mon Mar 12 19:30:00 CDT 2018

Consensus Actual Previous Revised
M/M percent change -1.0% -1.1% -2.3%
Yr/Yr percent change -1.9% 0.5% 0.6%

Highlights
The number of dwelling commitments for owner occupied housing in Australia fell 1.1 percent on the month in January (seasonally adjusted) after falling 2.3 percent in December, close to the consensus forecast for a drop of 1.0 percent. The number of commitments has now fallen in four of the last five months, providing further evidence that conditions have cooled in the Australian housing market.

The decline in headline commitments in January was mainly driven by loans for the purchase of established dwellings, which fell by 1.5 percent on the month. Loans for the purchase of new dwellings, though a smaller share of the total, dropped more sharply, down 4.7 percent on the month in January. This was partly offset by an increase of 3.1 percent on the month in the number of loans for the construction of dwellings.

The seasonally adjusted number of dwelling commitments fell 1.9 percent on the year in January, slowing from growth of 0.6 percent previously. In original terms, commitments rose 1.2 percent on the year after a fall of 2.5 percent in December.

The total value of dwelling commitments (excluding alterations and additions) increased 0.7 percent on the month in January , with the value of owner occupied housing commitments and investment housing commitments up 0.5 percent and 1.1 percent respectively.

Definition
Home Loans data are included in the monthly housing finance report. The report also contains data for home loans for secured and unsecured housing finance commitments for owner occupation, commitments for construction or purchase of dwellings for rent or resale and loans outstanding to individuals/households for housing.

Description
The health of the housing market is always a key element in evaluating the strength of the economy. And it is no different for Australia. The data released here are for secured and unsecured housing finance commitments for owner occupation, commitments for construction or purchase of dwellings for rent or resale, and loan outstanding to individuals/households for housing.

For secured housing finance for owner occupation, these data give the number and value of commitments made by banks, permanent building societies, wholesale lenders not elsewhere classified and other lenders, provided to individuals/households. These commitments are classified by construction of dwellings, the purchase of new and established dwellings, the refinancing of existing dwellings and alterations and additions to dwellings.