The Australian Bureau of Statistics Housing Finance data for April has been released and it continues to show Australians were already becoming more circumspect with their demand for debt even before the budget.
While the seasonally adjusted value of dwellings financed rose 1.7% the break up showed investors (+2.3%) continue to be the key driver over owner occupiers (+1.4%). In terms of the number of dwellings the seasonally adjusted data was flat at 52,109 but construction of dwellings fell 1.1% and purchase of new dwellings fell 1.5%.
Even though this is a new seasonally adjusted record, with monthly housing finance outcome of $16.911 billion for owner occupiers, taking out refinancing, it is clear the market is dropping back a little from the plateau.
Equally first home buyers continue to get crowded out of the market with the percentage of this cabal against total finance falling to 13.7% (the inverse of the chart above).
Overall when you combine this and the pull-back in house prices reported by RP Data today which has left the year to date change of the major capitals at just 1.7% it seems Australia’s mini-housing boom might be running out of steam.
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