Media Release
10 December 2008
PICK UP IN HOUSING FINANCE FIGURES
Statement by Peter Jones, Chief Economist
Loans for established dwellings moved higher in October in contrast to a decline in loans for the
purchase of new dwellings, according to peak building and construction industry organisation
Master Builders Australia.
Mr Peter Jones, Master Builders’ Chief Economist, said “Today’s figures are encouraging but it
is too early to call the recovery in housing finance.
“The
steep slide in loans over the past 12 months
justifies aggressive moves by the Reserve
Bank to bring interest rates down by a full three percentage points
at the past four
Board
meetings.
“Lower interest rates and the Government’s first home buyer boost scheme will bolster
confidence and begin to put a floor under the market over the next six months.”
He said “A pick up in the housing market will be an important catalyst for recovery in the wider
economy through the course of calendar 2009.”
The total number of dwellings financed for owner occupiers, seasonally adjusted, rose
by 1.3 per cent in October 2008, to be down 24.2 per cent on the same month last year.
The number of loans for ‘new’ dwellings (construction and new combined) was down by
0.4 per cent in October to be down 25.0 per cent on the same month last year.
-
the number of loans for the construction of dwellings fell by 2.0 per cent in October,
to be 20.5 per cent down on the same month last year.
-
the number of loans for the purchase of new dwellings
rose by
3.5 per cent in
October, to be down 33.3 per cent on the same time last year.
The number of loans for the purchase of established dwellings
rose by 1.6
per cent in
October, to be down 24.1 per cent on the same time last year.
The value of lending to finance the purchase of investment housing rose by 0.7 per cent
in October, to be down 23.3 per cent on a year ago.
For further information contact:
Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
