The concerns of an over-heating Australian property market should be laid to rest following today's release of the latest housing finance figures, says Neville Sanders, President of the Real Estate Institute of Australia. The latest housing finance figures from the Australian Bureau of Statistics reflect moderating housing lending and GDP growth below trend in February 2015. February was the fifteenth consecutive month of modest drops in lending levels if refinancing is excluded.
“Decreases were recorded in all states and territories except for New South Wales, Victoria and Tasmania. New South Wales had the largest increase of 1.2 per cent. The largest decrease was recorded in the Northern Territory – down 3.0 per cent," said Sanders.
“In trend terms, the number of new dwellings purchase commitments decreased by 1.4 per cent while new dwelling construction decreased by 1.1 per cent and the purchase of established dwellings increased by 0.5 per cent. The value of investment housing commitments again increased but by a more modest 0.5 per cent.”
“The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased marginally to 13.7 per cent compared to 13.6 per cent in January but it is the lowest since May 2004.”