Matthew Hassan, analyst at Westpac, points out that the Australian housing finance approvals came in a touch softer than expected in April as the total number of owner occupier loan approvals ex refi declined 1.1%mth vs consensus forecasts of a 0.3% dip, following a 2.6% fall in March.
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“The April update may have been affected by the timing of Easter and ANZAC day public holidays this year which would have reduced the effective working days available for processing approvals. Notably, the total value of approvals was also somewhat firmer and more consistent with the notion that markets may be starting to stabilise.”
“The value of investor loans ex refi fell 2.2%mth, coming off a similar-sized decline in March. The monthly tempo of falls has eased from the 4% pace seen over the second half of last year but is still a long way from stabilisation.”
“The combined total value of housing finance approvals across both owner occupier and investor segments (and excluding refi) nudged up 0.2%mth although it is still down 17.3%yr.”
“Construction-related approvals were a notable weak spot in the owner occupier approvals with a 5.2% drop suggesting there may be more weakness in non high rise building activity coming through.”
“Overall, the April update was slightly disappointing given the improved tone from auction market activity and an apparent slowing in price declines.”
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