The Australian Bureau of Statistics (ABS) has released housing finance data for the month of March, which registered a 0.9% seasonally-adjusted fall in the number of owner-occupied finance commitments over the month:
The result disappointed analysts’ expectations, who had expected a 0.5% increase in finance commitments.
The number of owner-occupied housing finance commitments excluding refinancings also fell by a seasonally-adjusted 0.9% over the month to be tracking 7% above the five-year moving average level. However, they were up 5.4% on March 2013 (see next chart).
The average loan rose by 1.2% over the month and was up 6.0% over the year. The below chart shows the series on a 3-month moving average basis (in order to smooth volatility). Note the recent weakening after spiking in the final quarter of 2013.
First home buyer (FHB) commitments rose by a non-seasonally adjusted 12.2% in March but represented just 12.6% of total owner-occupied commitments – a near record low. The number of commitments was also down 0.8% over the year (see below charts).
Finally, investor finance commitments moderated, falling by 0.8% (seasonally-adjusted) in March, but were up by 28% over the year and remain near all-time highs (see next chart).
Despite this month’s small fall, investors well and truly remain the key driving force in the housing market (see below charts).
