Housing data shows big fall in investor activity

Housing data shows big fall in investor activity

16 November 2015 by Nick Bendel 0 comments

Owner-occupiers are entering the market in increasing numbers as investor activity declines.

That was the key finding from the most recent data on housing finance, with $33.4 billion of commitments being made in September, according to the Australian Bureau of Statistics.

That September result marked a 1.6 per cent decrease on the previous month, but a 15.6 per increase on the previous year.

The owner-occupier share of those mortgage commitments reached $21 billion – up 3 per cent over the month and 24.3 per cent over the year.

However, the $12.3 billion investor share fell 8.5 per cent in monthly terms, although still rose 3.2 per cent annually.

Mortgage Choice chief executive John Flavell said the figures suggested the start of a downward trend in investment lending.

“Over the coming months, I wouldn’t be surprised to see the total value of investment lending activity continue to drop as the changes being made by Australia’s lenders continue to be felt by Australian borrowers and potential investors,” he said.

Meanwhile, the number of owner-occupier mortgage commitments climbed to 55,985 in September after 2 per cent monthly growth and 8.8 per cent annual growth.

That included 47,194 commitments for established homes – up 1.8 per cent over the month and 11.9 per cent over the year.

Borrowers also made 3,008 commitments for new homes, which represented a monthly rise of 5.4 per cent and an annual rise of 1.9 per cent.

There were also 5,783 commitments to build new homes, which marked a 1.9 per cent monthly increase but an 8.6 per cent annual decrease.

[LinkedIn: Has the investor crackdown affected your sales volumes?]

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