Australian new home lending in September rises 0.4% from August to 8,366 loans on seasonally adjusted basis, marking seventh consecutive month lending has remained around 8,300 level: Housing Industry Assn.
November 11, 2013
– Housing Finance data released today by the ABS shows that new home lending during September increased just marginally, said the Housing Industry Association, the voice of Australia’s residential building industry.
“During September 2013, the number of loans advanced for the purchase and construction of new homes edged up by 0.4 per cent to 8,366 on a seasonally adjusted basis. This represents the seventh consecutive month in which lending has been stuck at around the 8,300 level,” commented HIA Senior Economist, Shane Garrett.
“Despite encouraging signs of increased activity in the housing market, today’s figures continue to demonstrate how restrictive lending is one of the factors holding back activity,” noted Shane Garrett.
“However, activity is considerably stronger than this time last year. The annual increase in lending for home construction was up 6.3 per cent during the September 2013 quarter.
Lending activity for new home purchases was 27.5 per cent higher than a year earlier. Other housing market indicators like prices, approvals and sales confirm that the industry is entering into a strong recovery,” added Shane Garrett.
“Based on the generally improving indicators for the housing market, HIA has revised its forecasts for activity over the next number of years. These updated forecasts will be released on Wednesday as part of the quarterly Outlook series,” concluded Shane Garrett.
During the September quarter, the number of loans to owner occupiers for the construction and purchase of new homes rose by 0.5 per cent. This included a 0.8 per cent increase in the number of loans for the construction of a new dwelling and a 0.1 per cent rise in loans for the purchase of new homes. Excluding refinancing, the number of loans to owner occupiers for home purchase rose by 1.5 per cent in the September 2013 quarter.
In September 2013, we estimate that loans for new homes increased strongest in Tasmania (+29.6 per cent) and South Australia (+10.0 per cent). Increases also occurred in Queensland (+3.8 per cent), Victoria (+1.3 per cent) and NSW (+0.7 per cent). The number of loans declined by 8.1 per cent in Western Australia.
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