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Demand Slips for Aussie Home Loans as Buyers Exit the Market

Posted: October 14th, 2013 | Author: | Filed under: Australian Home Prices | Tags: , , , , , , , , | Comments Off on Demand Slips for Aussie Home Loans as Buyers Exit the Market

Demand Slips for Aussie Home Loans as Buyers Exit the MarketDemand for new home loans by owner-occupiers has slipped backward for the first time this year, first home buyers are deserting the market, official figures show.

The Bureau of Statistics Housing Finance data shows that the number of new mortgages to owner occupiers dropped by 3.9 percent in August to 49,912, seasonally adjusted. The value of loans to property investors held steady.

In the three months to August, the number of loans to owner occupiers for the construction and purchase of new homes rose by 0.3 per cent and was 13.3 per cent higher than the same period in 2012.

This included a 0.2 per cent increase in the number of loans for the construction of a new dwelling during the three months to August, with lending in this segment up 3.6 per cent compared with the same period of 2012. The number of loans for the purchase of new homes was 0.6 per cent higher in the three months to August :: Read the full article »»»»

Australian Home Lending Growth at a Snails Pace

Posted: February 11th, 2013 | Author: | Filed under: Australian Home Prices, Real Estate News | Tags: , , , , , , | 1 Comment »

MortgageAustralia’s Reserve Bank – RBA – figures indicate that Australians are taking out home loans at the slowest annual pace ever recorded, suggesting that the property downturn may be far from over.

Figures from the RBA show total lending to the private sector grew 0.4 per cent in December, with the amount Australians borrowed rising by only 3.6 per cent in 2012. It’s not all doom – though mostly – the RBA data shows housing credit remains the most consistently robust category of borrowing, with a 4.5 per cent rise over the 12 months.

But, that annual housing credit growth rate is the slowest in RBA recorded history, admitedly the figures only go back to 1977.

Home lending growth of 0.3 per cent in December is also one of slowest monthly increases recorded :: Read the full article »»»»

Business Spectator: Watch House Prices Fall in 2012

Posted: February 4th, 2012 | Author: | Filed under: Australian Home Prices, Business and Economy, Mortgage | Tags: , , , , , , | Comments Off on Business Spectator: Watch House Prices Fall in 2012

Watch house prices fall in 2012The Australian Bureau of Statistics house price data for December 2011 shows that house prices fell 4.8 per cent in nominal terms between December 2010 and December 2011. The usual suspects are already trying to see this as marking the bottom, while “just the facts, ma’am” reporting simply emphasises the scale of the downturn. In response to requests for my views on the next calendar year, here they are – along with some historical perspective on the house price bubble.

The force driving prices down is the same one that drove them up. Houses are overwhelmingly bought with borrowed money, so keeping house prices where they are requires a constant supply of new mortgages at the same level (relative to GDP per household) as now; rising house prices require new mortgages to be growing compared to income; and house prices fall if mortgages grow more slowly than income (Deflecting an Aussie debt demolition, January 31). That we’re now in a period of mortgage debt falling relative to income is finally obvious; only the FHVB delayed this happening.

Mortgage debt is now decelerating almost as much as it was prior to the introduction of the First Home Vendors Boost – the rate of acceleration is now about minus 1.5 per cent of GDP.

Read more at Business Spectator

New Home Construction Going Nowhere

Posted: December 14th, 2011 | Author: | Filed under: Australian Home Prices, Real Estate News, Renovation Planning | Tags: , , , , | Comments Off on New Home Construction Going Nowhere

Australian Housing Construction FallsThe total number of new homes started slumped 6.8 per cent on a seasonally adjusted basis in the three months to September, the Australian Bureau of Statistics says.

The number of houses fell 2.5 per cent, while work on new multi-unit dwellings – including apartments, town houses and semi-detached homes – dropped 12.2 per cent.

In the last 12 months the number of new homes started was down 11.5 per cent.

The Northern Territory and Queensland were the only places to see a rise in housing construction, up 11.8 and 7.9 per cent respectively.

Building commencements dropped sharply everywhere else, with the largest falls in Victoria and Tasmania.

CommSec economist Savanth Sebastian says the figures show the housing sector is “effectively going nowhere”, which is bad news for the rest of the economy.

“Activity levels have dried up with potential home buyers remaining on the sidelines,” Mr Sebastian said.

“However, the catalyst for a modest improvement in building should come from the recent rate cuts.

“Given the significant impact that housing has on an array of other sectors, a resurgence in housing activity will be needed to support broader economic growth over the coming year.”