Housing Finance Up To $1.3 Trillion In May – ABS

The ABS released their latest housing statistics today. Total ADI lending now tops $1.3 trillion. Investment lending has reached a new high at 33.8% of all loans. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.2%. Investment housing commitments rose 0.3% and owner occupied housing commitments rose 0.2%. However, In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 0.8%.
OOMay2014There were some state variations in owner occupation loans, but in percentage terms there is more noise in the data from the smaller states. NSW, QLD and SA were up from the previous month, whilst VIC and TAS fell month on month.

OOStatePCMay2014

The proportion of fixed rate loans remain elevated, but off its 20% high in 2013.

OOFixedMay2014First time buyers were slightly higher in May, but still lower than average and close to all time lows.

OOFTBMay2014Investment lending is still a significant factor, with close of 33.8% of lending for investment purposes. This is an all time record for investment lending.

InvestmentPCMay2014The banks have a greater proportion of investment lending …

InvestmentPCBanksMay2014compared with credit unions or building societies.

InvestmentPCCUMay2014 InvestmentPCBSMay2014The stock of total ADI housing lending is now above $1.3 trillion in original terms.

StockHousingLoansMay2014Finally, note there is an investigation into the first time buyer data. The ABS advise that in collecting this information, lenders are asked to report all loans to first home buyers. Concerns have been raised that under-reporting could occur if some lenders were only able to accurately report on those buyers receiving a first home buyer grant. Most data on first home buyers are collected by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. APRA is contacting lenders on behalf of the ABS to investigate whether lenders experience any difficulties reporting on loans to first home buyers. The outcomes from the investigation will be published on the ABS website.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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