The ABS published their housing finance data for April 2014. It is slightly below expectations, but the most significant element is the further rise in investor lending, which accounted for $10.9bn, or 39.4% of loans written. The highest ever was in December 2013, when Investment loans reached 39.6%.
According to the ABS, the trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.4%. Investment housing commitments rose 0.5% and owner occupied housing commitments rose 0.4%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.7%. In trend terms, the number of commitments for owner occupied housing finance rose 0.1%, the number of commitments for the construction of dwellings rose 1.1% and the number of commitments for the purchase of established dwellings rose 0.1%, while the number of commitments for the purchase of new dwellings fell 1.3%.
In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 12.3% in April 2014 from 12.6% in March 2014. This trend continues to show that first time buyers are unable or unwilling to enter the market. We will be publishing some of our recent survey results soon which will show affordability is the main factor preventing them entering the market.
