Home lending is slowing down, with new figures revealing its fourth consecutive drop this year.
ABS figures show housing finance was essentially flat in May, with the number of new dwelling commitments rising just 0.1%. But with refinancing taken out of the picture, the number of owner-occupied finance commitments actually declined 0.3%, a result the REIA has pointed out is the fourth consecutive fall.
"The May 2014 lending figures indicate a stabilising market, and signal a period in which interest rates should remain at their current levels," REIA president Peter Bushby said.
The value of new housing finance was down, falling 0.8% in seasonally adjusted terms. Mortgage Choice spokesperson Jessica Darnbrough said this was unsurprising given recent figures from RP Data.
According to RP Data research, dwelling values across Australia’s capital cities recorded their first fall in 12 months in May 2014. This drop in property values aligns closely with the data released today by the Australian Bureau of Statistics. While the number of home loans being approved was up ever so slightly, the total value of all dwelling commitments was down thanks to the recent drop in property values,” she said.