New housing finance is topping out: Pete Wargent

GUEST OBSERVER

 

I recently wrote here how it looked as though new home finance had shaped into quite a neat double top formation.

 

In November, finance for new owner-occupier purchases increased a bit, but overall the trendline does suggest that a second peak is forming. 

Of course, with the total dwelling stock only increasing by less than 2 per cent over the year to September 2016 to 9.76 million, it stands to reason that most investors will buy established - there just aren't that many new properties in any given year. 

 

I have been more interested to know what percentage of the new housing stock was purchased by owner-occupiers, but nobody I have asked seems to know (or even care about) the answer.

 

The housing finance figures show that owner-occupiers financed the construction of only 68,200 homes and the purchase of just 31,490 dwellings. 

 

What the housing finance figures don't capture is that some owner-occupier buyers of new homes are cash buyers.

But nevertheless, it's clear that largely the buyers of new dwellings are investors, albeit many of them from overseas.