Australian Bureau of Statistics Housing Finance Nov 2011

 In Broker, Consumer, Industry News

The ABS has today released its new figures on Housing finance for November. The number of committments for owner occupied dwellings has risen 1.4% – higher than was expected by economists.

Positive results for the housing market, but home buyers will still have to work hard to ensure they meet banking criteria, including presenting with a clean credit file.

By GRAHAM DOESSEL.

The Herald Sun reported Macquarie senior economist Brian Redican as saying the November  data was encouraging.

“Definitely, we are seeing a step in the right direction,” he said.

Mr Redican said the housing sector might receive a boost from the two successive interest rate cuts by the Reserve Bank of Australia (RBA) late last year, and the prospect of more cuts to come in 2012.

“I think it does have to have a positive impact.

“These numbers don’t reflect those cuts yet and it will have to take a few more months for that to flow through.

“What it does do is just make housing more affordable for those people that were thinking of going into the housing market.”

ABS HOUSING FINANCE NOVEMBER 2011

NOVEMBER KEY POINTS
VALUE OF DWELLING COMMITMENTS

November 2011 compared with October 2011:

The trend estimate for the total value of dwelling finance commitments excluding alterations and additions was flat (0.0%). Investment housing commitments fell 0.5%, while owner occupied housing commitments rose 0.2%.

In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 2.1%.
NUMBER OF DWELLING COMMITMENTS

November 2011 compared with October 2011:

In trend terms, the number of commitments for owner occupied housing finance rose 0.6%.

In trend terms, the number of commitments for the purchase of established dwellings rose 0.8% and the number of commitments for the purchase of new dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.9%.

In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 1.4%.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 20.0% in November 2011 from 19.1% in October 2011.

 

With talks of a weakening economy, we don’t imagine banks will be easing up on their lending criteria. It will still be essential for borrowers to have a squeaky clean credit file, which could involve people checking their credit report for errors if they are unsure why they may be refused finance.

If potential borrowers need help with credit repair, they can contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

Image: Idea go/FreeDigitalPhotos.net

 

 

 

 

 

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