The Australian Bureau of Statistics (ABS) disclosed that the value of investment housing commitments and number of loans for housing declined in September. As such, there is possibility that the economy will take the brunt of these slowdowns.
Delving into the data, the Real Estate Institute of Australia (REIA) reported that the latter sank by 0.9% in September, in trend terms. Further, the dollar amount approved for the purchase of dwellings by individuals for rent or resale dipped to the lowest level since July 2013 when prices were much cheaper.
The lower number of loans for housing, meanwhile, was evident in the number of owner-occupied finance commitments, which was down by 0.5% – marking the twelfth consecutive month of decreases.
However, if refinancing is excluded, it can be observed that the number of owner-occupied finance commitments slid by a lower 0.9%. Again, this is also the twelfth consecutive month since a rise.
Leading the slowdown were Victoria, New South Wales, Queensland and the Northern Territory. The largest loss of 0.9% was in Victoria. Western Australia, South Australia, Tasmania and the Australian Capital Territory, on the other hand, had slight gains, with the largest hike (1.8%) seen of in Western Australia.