December Dwelling Finance Commitments Down 2.4%

14/02/2013 9:22 pm



Australian Bureau of Statistics data released this week show the total value of dwelling finance commitments (excluding alterations and additions) fell 2.4%* in December to $20.836 billion.  The number of dwelling finance commitments also fell across the nation with a 1.5% fall. There were only two states that recorded positive figures, with South Australia rising 1.1% and Victoria rising 0.3%.   The Northern Territory recorded the biggest drop with a fall of 11.2%, followed by a 4.8% fall in the Australian Capital Territory, 3.2% in New South Wales, 1.9% in Western Australia and 0.8% in Queensland. Tasmania recorded a flat December.

The purchase of new dwellings rose 1.9% in December, after a fall of 10.9% in November. After recording fall in October, finance commitments for the construction of new homes rose in December by 1.2%. New South Wales recorded a disappointing December with a 14.4% (original terms) fall in finance commitments for the construction of new homes, while a fall of 11.6% (original terms) in finance commitments for the purchase of new homes. Finance commitments for the purchase of existing homes also fell by 17.5% (original terms) in December.

The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 14.9% in December from 15.8% in November (original terms). In New South Wales, First Home Buyer finance commitments in December fell to record lows with a further 28.8% in December to 938, following a fall of 33.8% in November. This is the third consecutive fall in first home buyers finance commitments.

December brought a sluggish end to the year in finance commitments in New South Wales. Overall, 2012 was down on 2011 in relation to total housing finance commitments, however new home purchase and home construction figures improved from the previous year.