Housing finance commitments in Australian jumped 1.3% in November 2008, slightly higher than market expectations and thus offering a glimmer of hope for the property industry.
Furthermore, the actual value of owner-occupied house finance also increased by 1.4% to $12.46 billion AUD, clearly showing that the Reserve Bank of Australia’s dramatic interest rate cuts have had some effect.
More positive news, and no doubt equally influenced by the interest rate cuts, was that the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments increased from 19.5% in October 2008 to 23.6% in November 2008, the highest proportion since January 2002.
Value of dwelling commitments, Total dwellings
No. of dwelling commitments, Owner occupied housing
On the other hand, however, the value of investment housing fixed loans dropped 6.1% to $5.03 billion AUD.