The Real Estate Institute of Australia (REIA) says the latest housing finance figures released by the Australian Bureau of Statistics (ABS) reflect a stabilising market.
The figures for May 2014 show, in trend terms, that the number of owner-occupied finance commitments increased by 0.1%, following monthly increases of 0.1% for the first four months of 2014.
If refinancing is excluded, in trend terms for May, the number of owner-occupied finance commitments fell by 0.3% – the fourth consecutive drop this year.
REIA President, Peter Bushby says, “Increases were recorded in Queensland, Western Australia, South Australia and the Northern Territory which had the biggest rise of 1.5%. Falls were recorded in Victoria, New South Wales, the Australian Capital Territory and Tasmania, with the ACT having the biggest fall of 0.5%.”
“In trend terms, the number of commitments for the construction of new dwellings climbed 0.5% and the purchase of established dwellings increased by 0.1%. However the purchase of new dwellings fell by 0.2%.”
The value of investment housing commitments again increased but by a more moderate rate of 0.3% in May, following over three years of consecutive monthly increases.
“The proportion of first home buyers in the number of owner-occupied housing finance commitments increased to 12.6% compared to 12.3% in April, which was level with the historical low
point of November 2013.”
“The May 2014 lending figures indicate a stabilising market, and signal a period in which interest rates should remain at their current levels,” concluded Mr Bushby.
News Release Real Estate Institute of South Australia media release, 14 July 2014