Matthew Hassan, Research Analyst at Westpac, notes that the Australian housing finance approvals continued to soften in July as the headline number of owner occupier loans edged up 0.4% in July but this was entirely due to a 3% surge in refi activity with the number of ‘new’ loans down 0.8%mth to be 9.6% lower over the last year.
Key Quotes
“The value of investor loans also declined 1.3% to be 15.7% lower over the year (an estimated -27%yr ex refi). While the headline was better than the market forecast of a 0.1% decline and Westpac’s forecast of a 0.5% decline, the detail ex refi is broadly in line.”
“The total value of housing finance approvals including investors but excluding owner occupier refi, declined 0.8%mth to be down 8.2%yr.”
“Overall, the finance data is consistent with the continued slowing in market conditions evident in auction markets and prices. Figures for August suggest Sydney auction market clearance rates may be starting to stabilise around a weak level but Melbourne continuing to decline. The latest CoreLogic price data however continues to show slippage in both markets.”
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