Second Consecutive Decline In Monthly Lending Volumes
By Peter Sarmas on 11 Aug 2015
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From the (HIA) Housing Industry Association
ABS housing finance figures released in August show that the total number of new home loans declined again during June, said Housing Industry Association, the voice of the residential building industry.
The total number of new housing loans to owner occupiers fell by 0.5 per cent in seasonally-adjusted terms during June, and was 9.1 per cent lower than 12 months earlier.
During June, the number of owner occupier loans for new home construction fell by 0.4 per cent. The volume of loans for new home purchase declined a little more sharply during the month (-0.8 per cent).
“This is the second consecutive monthly decline in new home lending,” noted HIA Senior Economist, Shane Garrett.
“An adequate flow of housing finance is vital to ensure that the pipeline of new housing supply meets Australia’s long term needs,” Shane Garrett continued.
“We’re concerned by the apparent tightening of home lending conditions in both the owner occupier and investor markets as a result of APRA intervention,” added Shane Garrett.
“Safeguarding the integrity of Australia’s financial system is obviously of paramount importance, but recent regulatory intervention risks obstructing new home building and damaging the economy’s long term growth capacity,” warned Shane Garrett.
Compared with 12 months ago, the number of owner occupier loans for the construction or purchase of new dwellings increased in New South Wales (+12.9 per cent), South Australia (+9.0 per cent) and the ACT (+0.5 per cent). The largest declines affected Western Australia (-21.4 per cent), Tasmania (-20.8 per cent) and the Northern Territory (-20.8 per cent). Reduced lending volumes also occurred in Queensland (-7.8 per cent) and Victoria (-4.8 per cent).
