Housing finance approvals up for August

The Australian Bureau of Statistics last week released data regarding housing finance commitments for the month of August 2011.  These are generally considered to be reasonably good indicators of the state of the residential property market as they represent the aim of the population to engage with the housing market, either through the purchase or construction of a dwelling.  

According to the ABS, the total value of dwellings financed in August rose 1.1 per cent (trend) compared with July 2011, with the seasonally adjusted series rising 1.0 per cent in August.   

The total value of owner occupied housing commitments rose 1.3 per cent in August 2011 (trend), with increases recorded in commitments for the purchase of established dwellings (up 1.4 per cent) and the purchase of new dwellings (up 2.6 per cent).  Commitments to finance for the construction of dwellings fell by 0.1 per cent.  

The ABS also noted that the total value of housing commitments for investment purposes rose 0.6 per cent in August compared with July 2011. 

The first home buyers group also showed increased activity – the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 15.3 per cent in August 2011, from 14.9 per cent in July 2011.  The ABS recorded that the average loan size for a first home buyer also rose by $900 across the month to $283,900. 

While not large increases, these improvements in the levels of housing finance commitments are a positive step nonetheless for the residential property market.  It will be interesting to see the data over the coming months as it begins to take into account the possibility of a rate cut by the RBA, or at least the waning likelihood of a rate rise, while simultaneously reflecting concerns for global markets. 

For more details regarding the data, please visit the ABS website. 

To talk to an experienced property professional about your housing finance needs, please drop by a CENTURY 21 Real Estate or CENTURY 21 Home Loans office, located in hundreds of locations Australia wide. 

Posted by Charles Tarbey on 25/10/2011 at 2:49 PM | Categories:


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