|M/M percent change||-1.1%||-4.2%||1.2%|
|Yr/Yr percent change||1.8%||6.7%|
The number of dwelling commitments for owner occupied housing fell by 4.2 percent in July, a much sharper drop than consensus expectations of a fall of 1.1 percent. This is the biggest monthly decline in the series since a fall of 5.8 percent in January this year.
This weakness in the headline number reflected falls in the construction of dwellings (minus 5.0 percent), the purchase of new dwellings (minus 3.4 percent) and the purchase of established dwellings (minus 4.1 percent). Total dwelling commitments were up 1.8 percent over the last twelve months.
In value terms, the total value of dwelling commitments excluding alterations and additions fell 1.8 percent in July. This reflected a drop in the total value of owner occupied housing commitments (minus 3.1 percent), offset by a small increase in investment housing commitments with fixed loans (0.5 percent).
This fall in home loans is in line with other recent indicators pointing to some moderation in the housing sector. Earlier this week, a survey showed a sharp drop in housing construction in August.
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.
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.