June Australia housing finance approvals: Westpac's Matthew Hassan

June Australia housing finance approvals: Westpac's Matthew Hassan
June Australia housing finance approvals: Westpac's Matthew Hassan

GUEST OBSERVER

The June housing finance report was a mixed bag with the headline number of owner occupier approvals undershooting expectations slightly but most of the detail more positive.

The number of approvals owner occupiers rose 1.2 percent in June, below expectations of a 2.3 percent gain. However ex refi, ‘new’ approvals were more in line with a 2.1 percent gain.

The value of housing finance approvals to investors was up 3.2 percent mth – although there was not a consensus forecast on this component it was probably a touch better than expected.

Both segments appear to have responded positively to May’s interest rate cut although broader market measures such as auction clearance rates point to a firming in demand rather than a sharp pick up.

The detail also showed solid gains 2 percent+ for construction-related finance approvals.

Details
 
Owner–occupiers (no.)   1.2%mth, 6.7%yr          
– ex-financing (no.)        2.1%mth, 3.8%yr               

Construction of dwellings (no.)               2.1%mth, 1.1%yr     
Purchase of newly built dwellings (no.)   2.7%mth, 19.6%yr                       

Value of loans:             

Owner-occupiers ($bn)   1.8%mth, 9.4%yr   
Investors ($bn)              3.2%mth, –13.1%yr      
Total ($bn)                    2.3%mth, 0%yr 
Total ex refi ($bn)          2.8%mth, -3.4%yr      

Matthew Hassan is senior economist with Westpac.

Tags: 
Housing Market Housing Finance

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