Media Release
8 October 2008
FURTHER DECLINE IN HOME LENDING
Statement by Peter Jones, Chief Economist
Another fall in August reinforces the steep decline in home lending that has occurred over the
past year, and lends support to the Reserve Bank’s decision to bring interest rates down by a
full percentage point, according to peak building and construction industry organisation Master
Builders Australia.
Mr Peter Jones, Master Builders’ Chief Economist, said “The bold decision to bring rates sharply
down will bolster confidence and should begin to attract home buyers and investors back into
the market particularly with the likelihood of more cuts to come over the next six months.
He said “A further period of uncertainty can be expected over the remainder of the year as the
full extent of the global financial crisis plays out and this means soft conditions in the housing
market can be expected to prevail for another 6 to 9 months.”
The total number of dwellings financed for owner occupiers, seasonally adjusted, fell by
2.2 per cent in August 2008, to be down 25.6 per cent on the same month last year.
The number of loans for ‘new’ dwellings (construction and new combined) fell by 4.6 per
cent in August to be down 29.0 per cent on the same month last year.
-
the number of loans for the construction of dwellings fell by 4.0 per cent in August, to
be 17.9 per cent down on the same month last year.
-
the number of loans for the purchase of new dwellings fell by 6.0 per cent in August,
to be down 46.5 per cent on the same time last year.
The number of loans for the purchase of established dwellings
fell by 1.9
per cent in
August, to be down 25.1 per cent on the same time last year.
The value of lending to finance the purchase of investment housing fell by 5.0 per cent in
August, to be down 23.4 per cent on a year ago.
For further information contact:
Peter Jones, Chief Economist, Tel: 02 6202 8888, Mbl 0403 440 838
NEWS 
