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

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
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?
Saving Changes