The latest data from the Australian Bureau of Statistics shows that in some sectors loans increased slightly but in others they were static in April of this year.
The number of seasonally adjusted loans for construction barely moved in April; rising by only 0.2%, while loans for the purchase of new dwellings eased back by 0.4%. The number of loans for established homes net of refinancing rose by 1% during April and was 4.9% higher than a year earlier.
In terms of owner occupiers, the value of loans for the construction or purchase of a new home rose by 2.5% during April 2013 and was 20% higher than a year earlier. Lending for established dwellings was a little weaker, with the value of loans falling by 1.6% during April. But the value of lending for established dwellings was still 7.1%higher than 12 months ago.
The investor side of housing finance provided a stronger result in April, driven by the existing property market. The aggregate value of loans to investors rose by 1.1%. However, in a weak update the value of lending for the construction of new residential property fell by 13.3% and was down by 8.1% over the three months to April this year.
‘The increase in investor activity with regard to existing property suggests that a view is taking hold that the market outlook is improving. However, residential investment in construction continues to languish near decade lows, a pointer to the disincentive to new home building attributable to excessive tax and regulatory costs,’ said Shane Garrett, HIA senior economist.
‘The figures show that new home lending for owner occupiers is tracking higher overall, but at a very moderate rate from a low base. For owner occupiers, the aggregate number of loans for the construction and purchase of new homes was flat during April 2013, itself a disappointing outcome, but the number was 17.9% higher than 12 months earlier,’ he added.
In April 2013 the total number of seasonally adjusted owner occupier loans for new home building, combining loans for construction and purchase of new dwellings, varied regionally. They increased by 1.9% in New South Wales, by 6.4% in Western Australia, by 3.7% in Tasmania, and by 2% in the Australian Capital Territory.
The number of loans for new homes fell by 5.7% in Victoria, by 1.1% in Queensland, by 0.3% in South Australia, and by 8.4% in the Northern Territory.