ABS Figures Released - Home Loans Value in Nov 2005 Down

Submitted by Craig Strzelecki on 17 January, 2006 - 16:23

"The Australian Bureau of Statistics said the total value of finance for houses dropped to $18.3 billion during the month."

For traders the ramifications In my opinion are minor - but it's nice to know. The economy doesn't rely on one indicator to tell us at what level it is. But in an economic sense it could be seen as a slowing down of the property market, and nothing more - perhaps a knock on effect that people are buying less houses could mean they are hesitant to or there's enough houses in the market... who knows? One can only speculate.

"While owner-occupied housing finance increased 1.2 per cent to $12.8 billion, the investment sector dropped, falling 3.7 per cent to $5.5 billion.

The total number of home loan approvals increased 0.4 per cent to 58,713.

Loans for the purchase of established buildings increased 0.5 per cent, rose 1.1 per cent for the construction of new homes, but fell 3.4 per cent for the purchase of new dwellings.

The percentage of the number of commitments for owner-occupied housing at a fixed rate of interest (for at least two years) increased from 12.9 per cent in October to 14.7 per cent in November, the second increase following six consecutive monthly decreases."