The value of new housing finance commitments has fallen 14.8 per cent from its peak in January this year but is still well above pre-pandemic levels.
According to the latest Australian Bureau of Statistics lending data, the value of new housing loan commitments fell 8.5 per cent in July, compared with the previous month. The A$28.4 billion of new lending was down 11.3 per cent on the same time last year.
The fall in July follows a month-on-month fall of 4.4 per cent in June.
The value of new lending to owner occupiers was down 7 per cent, compared with May, and was down 15.9 per cent over 12 months.
New lending to residential property investors was down 11.2 per cent month-on-month and was unchanged from the same time last year.
The value of lending to first home buyers fell 9.5 per cent month-on-month and fell 32.6 per cent over 12 months.
The market peaked in January, when there was $33.2 billion of new housing finance commitments – the highest figure in the ABS data set. The fall from the peak is 14.8 per cent.
The ABS said that despite the falls this year, the value of loan commitments remains significantly higher than pre-pandemic levels. Owner occupier loans in July were 40 per cent higher than February 2020 and investors loans were 78 per cent higher.
External refinancing fell 1.2 per cent to $17.9 billion month-on-month but was 7.6 per cent higher compared to a year ago.
The average loan size for owner occupiers was steady at a little over $609,000.
Reserve Bank data show that lenders’ housing loan balances grew by 0.5 per cent in July and by 7.7 per cent over the 12 months. The growth rate has fallen from its peak of 7.9 per cent in March, April and May.
Owner occupier loan balances grew by 0.5 per cent in July and by 8.3 per cent over 12 months, while investor loan balances grew by 0.5 per cent in July and by 6.5 per cent over 12 months.
APRA’s latest lending figures show that all four big banks are lagging the market. With system growth of 1.6 per cent over the three months to July, ANZ’s book grew by 0.8 per cent, Commonwealth Bank’s by 1.1 per cent and Westpac’s by 1.2 per cent.
NAB’s mortgage book grew by 4.7 per cent over the three months but that figure includes the merging of Citibank’s loan book following the completion of the sale of Citi’s Australian consumer banking business to NAB in May.
NAB’s book grew 0.2 per cent in July, compared with system growth of 0.3 per cent for the month.