Housing Finance Back to 2013 Levels

Housing Finance Back to 2013 Levels

Investing.com  | Nov 09, 2018 13:56

Lending activity continued to fall in September

Originally published by Housing Industry Australia

“The slide in home lending activity in September has taken the number of loans to owner-occupiers down to the lowest level that we’ve seen since 2013,” said HIA Acting Principal Economist, Geordan Murray.

ABS housing finance figures for the month of September 2018 show broad weakness:

  • The number of loans to owner-occupiers building or purchasing a new home dipped by 3.8 per cent in the September 2018 quarter and is 13.5per cent lower than the level a year ago.
  • The number of loans to owner-occupiers purchasing established homes (excluding refinancing) was steady in September but was down by 2.5per cent in the quarter and was 11.7 per cent lower than the level a year ago.
  • First homebuyer activity has retreated following the improvements of 2017. Lending to first homebuyers was down by 2.0 per cent in the quarter and is down by 3.7 per cent compared with a year ago.
  • The value of lending to investors continued to slide and was down by 5.0per cent in the quarter and is 18.2 per cent below the level recorded a year ago.

“Last month we noted that investor lending activity had dropped back to 2013 levels but now owner-occupiers lending has followed suit,” said Mr Murray.

“The comparison to 2013 is important. This was the point in time when the recovery in the housing market begun. We are seeing lending activity for both new and established homes softening.

“The housing cycle has most definitely progressed into a contractionary phase and the shift in sentiment would typically see a drop in demand for new loans. In context of the more restrictive lending environment that homebuyers now face, it is clear that the soft lending numbers are as much to do with would-be home buyers having greater difficulty accessing finance as it is about sentiment.

“At this juncture it will be important for the regulators to monitor the impact of their earlier interventions to ensure that policy settings remain appropriate in the new phase of the cycle,” concluded Mr Murray.

Housing finance by purpose

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+