Home loan values bounce back in November
Following months of falls in both values and commitments.
The value of Australian home loans rose 0.6% to $32.723 billion in November, propped up by a 1.7% rise in investment housing (fixed loans) to $12.914 billion.
Australian Bureau of Statistics (ABS) housing finance figures for November show owner-occupied housing commitment values remained flat month-on-month.
The number of owner-occupied housing commitments fell slightly 0.1% to 53,969, the number of new dwelling purchase commitments rose 0.7% to 2,691, commitments for the purchase of established dwellings fell 0.2% to 45,657, while dwelling construction commitments rose modestly, up 0.2% to 5,621.
Housing finance is getting back on track after months of significant falls in both values and commitments.
Research indicates the average size of home loans will increase significantly over the next few months.
The number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments rose from 13.7% in October 2016 to 13.8% in November 2016.
The value of outstanding loans financed by Authorised Deposit-Taking Institutions (ADIs) was up 0.6% month-on-month in November to $1,550 billion. Outstanding owner-occupied loans, financed by ADIs, increased 0.7% to $1,006 billion, while investment housing loan outstandings rose 0.6% to $544 billion.
Outstanding housing loans for banks rose 0.7% in November to $1,513 billion. Owner-occupied figures jumped 0.7% to $977 billion and outstanding investment housing loans increased 0.6% to $536 billion.
Australia's banks enjoyed moderate monthly rises in the value of both owner-occupied loans and housing investment, while credit card debt increased, according to the Australian Prudential Regulatory Authority.
A recent survey found younger generations are taking a different path than the traditional foray into home ownership, investing in property but continuing to live and rent in more preferable, inner-city areas.
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