Australia: number of owner occupier housing finance approvals ex refi up 0.8%, value of investor loan approvals ex refi up 0.9%.
Housing finance approvals posted a modest gain in Feb, owner occupier approvals in line with expectations but investor loans a touch better.
The total number of owner occupier loan approvals ex refi rose 0.8%mth, slightly better than the consensus forecasts of a 0.5% gain but in line with Westpac’s view of a 1% gain. That follows a sharp decline since mid 2018 with monthly declines averaging 1.5% between June and January. Approvals are down 12.5%yr.
The value of investor loans ex refi rose 0.9%mth, a starker turnaround after average declines of 3.6%mth over the previous six months. The monthly value of loans to this segment is still down heavily by 29.1% over the last year.
The combined total value of housing finance approvals across both owner occupier and investor segments (and excluding refi) rose 2.7%mth but was still down 18.6%yr.
Overall, the February update was firmer than expected, consistent with the improved tone from auction market activity and a slowing in price declines in recent months. Some of the effects of tightening credit conditions may also be dissipating. That said, the signs of improvment are still only tentative. The market may be starting to find a base in terms of finance activity but conditions remain weak overall.
Details:
Owner–occupiers (no.) 2%mth, -10.7%yr – ex-financing (no.) 0.8%mth, -12.5%yr
Construction of dwellings (no.) 2.5%mth, -5.2%yr Purchase of newly built dwellings (no.) -2.4%mth, -31.2%yr
Value of loans: Owner-occupiers ($bn) 3.9%mth, -12%yr Investors ($bn) -0.2%mth, -26.6%yr Total ($bn) 2.8%mth, -16.6%yr Total ex refi ($bn) 2.7%mth, -18.6%yr
