AU: Home Loans


Mon Jun 11 20:30:00 CDT 2018

Consensus Actual Previous Revised
M/M percent change -2.0% -1.4% -2.2% -2.3%
Yr/Yr percent change -2.9% -3.5% -3.6%

Highlights
The number of dwelling commitments for owner occupied housing in Australia fell 1.4 percent on the month in April (seasonally adjusted) after falling 2.3 percent in March, stronger than the consensus forecast for a drop of 2.0 percent. The number of commitments has now fallen for five consecutive months and in seven of the last eights months, consistent with other data indicating that conditions have cooled in the Australian property market.

The decline in headline commitments in April was again broad-based, with falls in all categories. Loans for the purchase of established dwellings, the largest category, fell 1.3 percent on the month, while loans for the purchase of new dwellings and the construction of dwellings also fell 3.7 percent and 0.2 percent respectively in March.

The seasonally adjusted number of dwelling commitments fell 2.9 percent on the year in April 2.9 percent on the year in April after a 3.6 percent decline in March. In original terms, commitments increased 2.7 percent on the year after falling by 9.4 percent previously.

The total value of dwelling commitments (excluding alterations and additions) fell 0.2 percent on the month in March, with an increase of 0.2 percent in the value of owner occupied housing commitments outweighed by a decline of 0.9 percent in the value of investment housing commitments. Further weakness in investment housing commitments suggests that efforts by regulators to tighten credit conditions and lending standards are continuing to have an impact.

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.